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The CPI Differs from the GDP Deflator in That

Question 183

Multiple Choice

The CPI differs from the GDP deflator in that


A) the CPI is an inflation index,while the GDP deflator is a price 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 GDP deflator but not in the CPI.
D) increases in the prices of domestically produced goods that are sold to the U.S.government show up in the GDP deflator but not in the CPI.

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