One of the differences between the GDP deflator and the consumer price index is
A)the GDP deflator includes income earned by American citizens working in foreign countries and the consumer price index is based solely on purchases made in the U.S.
B)the consumer price index basket of goods is updated constantly by the Bureau of Labor Statistics whereas the GDP deflator is updated only occasionally.
C)the consumer price index includes items not included in the GDP deflator such as airplanes purchased by the Air Force.
D)the GDP deflator reflects prices for all goods and services produced domestically and the consumer price index reflects prices for some goods and services bought by consumers.

Question

Quizplus · Accepted Answer

The GDP deflator reflects prices for all goods and services produced domestically, while the consumer price index reflects prices for some goods and services bought by consumers. Plus, the CPI does not include items that aren't commonly purchased by consumers, such as airplanes purchased by the Air Force.

One of the Differences Between the GDP Deflator and the Consumer