Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.

The GDP deflator for this year is calculated by dividing the 1. ........... using 2............ by the 3............ using 4............ and multiplying by 100.

However, the CPI reflects only the prices of all goods and services 5..............

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Sonal BahlLv10

6 Oct 2020

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Related questions

What is the key difference between the Consumer Price Index(CPI) and the GDP deflator?

A. The two indexes measure price changes for different "baskets" of products.

B. The GDP deflator includes imports, while the CPI only includes domestically produced goods and services.

C. The formulas used to construct the indexes bear little resemblance to each other.

D. The CPI is broader in coverage than is the GDP deflator.

indigoalpaca102

An important difference between the GDP deflator and the consumer price index is that:

the GDP deflator reflects the prices of all final goods and services produced by a nation's citizens, whereas the consumer price index reflects the prices of all final goods and services bought by consumers.
the GDP deflator reflects the prices of all final goods and services bought by producers and consumers, whereas the consumer price index reflects the prices of all final goods and services bought by consumers.
the GDP deflator reflects the prices of all final goods and services produced domestically, whereas the consumer price index reflects the prices of goods and services bought by consumers.
the GDP deflator reflects the prices of goods and services bought by producers, whereas the consumer price index reflects the prices of goods and services bought by consumers.

plumelk226

Table 24-7. The table below applies to an economy with only two goods â hamburgers and hot dogs. The fixed basket consists of 4 hamburgers and 8 hot dogs.