Asked by
Shubham Arora
on Dec 17, 2024
Verified
In the U.S., when the price of oil rises, the CPI rises by much more than does the GDP deflator.
Price of Oil
The cost per barrel of crude oil as determined by global markets, influenced by factors like supply, demand, geopolitical events, and market speculation.
CPI
The Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.
GDP Deflator
A measure of the level of prices of all new, domestically produced, final goods and services in an economy.
- Analyze how the CPI differs from the GDP deflator, highlighting their respective features.
- Understand the effects of variations in prices on the Consumer Price Index and the Gross Domestic Product deflator.
Verified Answer
PB
Learning Objectives
- Analyze how the CPI differs from the GDP deflator, highlighting their respective features.
- Understand the effects of variations in prices on the Consumer Price Index and the Gross Domestic Product deflator.