In Bovania,milk Constitutes 56 Percent of the Typical Basket of Goods

Multiple Choice

In Bovania,milk constitutes 56 percent of the typical basket of goods for a typical consumer.Let's say the price of milk rises by 7 percent and the prices of all other goods fall by 4 percent.Based on the information given,we can definitely say

A) the consumer price index (CPI) in Bovania is greater than in the previous year.
B) the consumer price index (CPI) in Bovania is less than in the previous year.
C) if consumers get a 4 percent pay raise,they are worse off in terms of their real income compared to inflation as measured by the Bovanian consumer price index (CPI) .
D) the gross domestic product (GDP) deflator must be higher than the consumer price index (CPI) .
E) the gross domestic product (GDP) deflator must be less than the consumer price index (CPI) .