Which of the following is/are true? I. One difference between the CPI and the GDP deflator is that imported goods are included in the CPI calculation but not in the GDP deflator calculation. II. Another difference between CPI and the GDP deflator is that capital goods produced by the domestic economy are included in the GDP deflator calculation but generally not in the CPI calculation. Select one: O A. Only I is true. O B. Only II is true. O C. Both of the above are true. O D. None of the above is true.

Which of the following is/are true? I. One difference between the CPI and the GDP deflator is that imported goods are included in the CPI calculation but not in the GDP deflator calculation. II. Another difference between CPI and the GDP deflator is that capital goods produced by the domestic economy are included in the GDP deflator calculation but generally not in the CPI calculation. Select one: O A. Only I is true. O B. Only II is true. O C. Both of the above are true. O D. None of the above is true.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: Measuring The Cost Of Living

Section: Chapter Questions

Problem 3CQQ

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Q11
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