The basket of goods in the consumer price index changes
A)occasionally,as does the group of goods used to compute the GDP deflator.
B)automatically,as does the group of goods used to compute the GDP deflator.
C)occasionally,whereas the group of goods used to compute the GDP deflator changes automatically.
D)automatically,whereas the group of goods used to compute the GDP deflator changes occasionally.

Question

Quizplus · Accepted Answer

The basket of goods in the consumer price index changes occasionally, whereas the group of goods used to compute the GDP deflator changes automatically. The CPI basket of goods is reviewed every few years to reflect changes in consumer spending patterns, whereas the GDP deflator automatically adjusts to changes in the composition of production over time.

The Basket of Goods in the Consumer Price Index Changes