Assume most athletic apparel bought by u. S. Consumers is imported from other nations. If all else is constant, an increase in the price of foreign-made athletic apparel will cause the u. S.

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Lennon Liu

25 April, 00:24

Assume most athletic apparel bought by u. S. Consumers is imported from other nations. If all else is constant, an increase in the price of foreign-made athletic apparel will cause the u. S.

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Uriel Boone · Answer 1

Answer: c. consumer price index to increase more than the GDP deflator.

Explanation: When most athletic apparel bought by U. S. Consumers are imported from other nations. If all else is constant, an increase in the price of foreign-made athletic apparel will cause the U. S consumer price index to increase more than the GDP deflator. This is because imported goods are not included in the GDP deflator but are included in the Consumer price index.