Ask Question
BusinessBusiness
8 February, 16:00

Which of the following is correct?

- The GDP deflator is better than the CPI at reflecting the goods and services bought by consumers.

- The CPI is better than the GDP deflator at reflecting the goods and services bought by consumers.

- The GDP deflator and the CPI are equally good at reflecting the goods and services bought by consumers.

- The GDP deflator is more commonly used as a gauge of inflation than the CPI is.

+5
Answers (1)
  1. 8 February, 17:05
    0
    Option (B) is correct.

    Explanation:

    Gross domestic product (GDP) deflator determines the prices of all the good and services produced within the nation whereas consumer price index (CPI) calculates the price of goods and services that are bought by the consumers.

    GDP deflator only includes the goods and services that are produced domestically which means that it doesn't include imported goods but in case of CPI, it includes the price of all the imported goods that are bought by the consumers.

    Therefore, above are the reasons why CPI is better than GDP deflator at indicating the prices of the goods and services that are bought by the consumers of a nation.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which of the following is correct? - The GDP deflator is better than the CPI at reflecting the goods and services bought by consumers. - ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which of the following accounting steps in the accounting process would be completed last? a. posting b. preparing the financial statements c. preparing the adjusted trial balance d. journalizing
Answers (1)
Savings accounts are limited in their transactions. how many transactions and what law
Answers (1)
The following is an extension economy of scale a bulk buying b the ability to obtain loans from the bank c division of labor d a good supply of skilled labor
Answers (1)
In the early 1980s, David Jimenez, a corporate finance manager, was faced with which of the following problems?
Answers (1)
Pharmaceutical companies sell some of their products to hospitals and clinics directly. they also market other products to large retail chains like walgreens that distribute them to their stores across the nation.
Answers (1)
New Questions in Business
Chief financial officer Justin took his family on an Asian vacation using the company jet. He excuses his behavior by stating, "My family and I were spreading goodwill around the world for the company.
Answers (1)
You found a serious multicollinearity problem in your regression model. It turns out that x1 and x2 are highly correlated to each other. Therefore, you need to drop one of these variables. You also found that the correlation of y and x1 is 0.
Answers (1)
Pat, a world famous musician and composer, agrees to give ten piano lessons to Quinn in exchange for $1,000. Pat's attempt to delegate his contract to Ruth, an inexperienced pianist, will probably be:
Answers (1)
Private equity firms, such as Blackstone and Kohlberg Kravis Roberts & Co., search for firms where the managers appear not to be maximizing profits.
Answers (1)
When the price of chai tea lattés is $5, maxine buys 20 per month. when the price is $4, she buys 30 per month. maxine's demand for chai tea lattés is a. inelastic, and her demand curve would be relatively steep. b.
Answers (1)
Home » Business » Which of the following is correct? - The GDP deflator is better than the CPI at reflecting the goods and services bought by consumers. - The CPI is better than the GDP deflator at reflecting the goods and services bought by consumers.
Sign Up Forgot Password?