Most,but not all,athletic apparel sold in the United States is imported from other nations.If the price of athletic apparel increases,the GDP deflator will
A)increase less than will the consumer price index.
B)increase more than will the consumer price index.
C)not increase,but the consumer price index will increase.
D)increase,but the consumer price index will not increase.

Question

Quizplus · Accepted Answer

Since most athletic apparel is imported, an increase in its price will have a smaller impact on the overall GDP deflator compared to the consumer price index which includes a wider range of goods and services. Therefore, the GDP deflator will increase less than the consumer price index.

Most,but Not All,athletic Apparel Sold in the United States Is