The Price of DVD Players Increases Dramatically, Causing a 1

Multiple Choice

The price of DVD players increases dramatically, causing a 1 percent increase in the CPI. The price increase will most likely cause the GDP deflator to increase by

A) more than 1 percent.
B) less than 1 percent.
C) 1 percent.
D) None of the above is correct; this particular price increase will not affect the GDP deflator.