Which of the Following Statements Is True Concerning the GDP

Multiple Choice

Which of the following statements is true concerning the GDP deflator and the CPI as measures of inflation?

A) Only the CPI shows the rise in inflation in the 1960s and the 1970s.
B) Inflation, as measured by the GDP deflator, is more volatile than inflation as measured by the CPI.
C) Only the GDP deflator shows the rise in inflation the 1960s and the 1970s.
D) The CPI and the GDP deflator show similar movements in general inflation.
E) Only the GDP deflator shows the decline in inflation in the 1980s and the early 1990s.