The CPI but not the GDP deflator takes into account.
A)The prices of imports that consumers buy
B)Investment goods bought by businesses
C)Goods bought by the government
D)None of the above

Question

The CPI but not the GDP deflator takes into account.
A)​The prices of imports that consumers buy
B)​Investment goods bought by businesses
C)​Goods bought by the government
D)​None of the above

Quizplus · Accepted Answer

The CPI takes into account the prices of goods and services purchased by consumers, including imports. The GDP deflator, on the other hand, measures the overall price level of goods and services produced in the economy, regardless of whether they are bought by consumers, businesses, or the government.

The CPI but Not the GDP Deflator Takes into Account