The CPI Differs from the GDP Deflator in That

Multiple Choice

The CPI differs from the GDP deflator in that

A) the CPI is a price index, while the GDP deflator is an inflation index.
B) substitution bias is not a problem with the CPI, but it is a problem with the GDP deflator.
C) increases in the prices of foreign produced goods that are sold to U.S.consumers show up in the CPI but not in the GDP deflator.
D) increases in the prices of domestically produced goods that are sold to the U.S.government show up in the CPI but not in the GDP deflator.