If There Is a Reduction in the Price of Large

Multiple Choice

If there is a reduction in the price of large road paving machines imported into Canada from Sweden, what will happen to the GDP deflator and the consumer price index?

A) The GDP deflator and the consumer price index will decrease.
B) The GDP deflator will not change; the consumer price index will decrease.
C) The GDP deflator will decrease; the consumer price index will not change.
D) Neither the GDP deflator nor the consumer price index will change.