Chapter 4

Question 1

CPI vs. GDP Deflator - Prices of Capital Goods

Answer 1

Included in GDP Deflator.

Excluded from CPI.

Question 2

CPI vs. GDP Deflator - Prices of Imported Consumer Goods

Answer 2

Included in CPI.

Excluded from GDP Deflator.

Question 3

CPI vs. GDP Deflator - Basket of Goods

Answer 3

CPI - fixed.

GDP Deflator - changes every year.