Label each statement according to whether it describes the consumer price index (CPI) or GDP deflator. Statements may describe one, both, or neither of the terms. If both labels apply, place both in the box. If neither applies, leave the box blank. 1. Is equal to 100 for the base year 2. is based on commonly used consumer goods only 3. includes the quantity and price of a 747 aircraft produced 4. equals nominal GDP divided by real GDP, times 100 5. uses the same price for goods in the market basket and adjusts quantities to reflect changes over time 6. is subject to biases because it does not reflect changes in buying patterns 7. would include the price of imported tomates
Label each statement according to whether it describes the
1. Is equal to 100 for the base year
2. is based on commonly used consumer goods only
3. includes the quantity and price of a 747 aircraft produced
4. equals nominal GDP divided by real GDP, times 100
5. uses the same price for goods in the market basket and adjusts quantities to reflect changes over time
6. is subject to biases because it does not reflect changes in buying patterns
7. would include the price of imported tomates
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