Asked by
Michelle Skibicki
on Nov 16, 2024Verified
The GDP deflator reflects the prices of all goods and services produced around the world, whereas the consumer price index reflects the prices of all goods and services bought by consumers.
GDP Deflator
A metric reflecting the price rates of freshly created, domestically made, final goods and services in an economic system.
Consumer Price Index
An indicator that evaluates the weighted average cost of a collection of consumer products and services like healthcare, food, and transportation.
- Examine the differences and similarities between the Consumer Price Index (CPI) and the GDP deflator.
Verified Answer
EB
Learning Objectives
- Examine the differences and similarities between the Consumer Price Index (CPI) and the GDP deflator.