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    Principles of Economics Study Set 11
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    Exam 21: The Price Level and Inflation
  5. Question
    The Consumer Price Index (CPI)and the Gross Domestic Product (GDP)deflator
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The Consumer Price Index (CPI)and the Gross Domestic Product (GDP)deflator

Question 18

Question 18

Essay

The consumer price index (CPI)and the gross domestic product (GDP)deflator are both measures of inflation.Explain the difference between them.

Correct Answer:

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The CPI tracks the prices of a "basket" ...

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