A decrease in the price of domestically produced industrial robots will be reflected in a. the GDP deflator but not in the consumer price index. b. the consumer price index but not in the GDP deflator.

Question

Adelyn Shepherd

Business

26 September, 08:38

A decrease in the price of domestically produced industrial robots will be reflected in a. the GDP deflator but not in the consumer price index. b. the consumer price index but not in the GDP deflator.

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Jessie Boone · Answer 1

A decrease in the price of domestically produced industrial robots will be reflected in the GDP deflator but not in the consumer price index.

Explanation:

Although from the outset, CPI and GDP Deflator might measure something very similar, there are a couple of key contrasts. The first is that GDP Deflator incorporates just local merchandise and nothing that is imported. This is diverse because the CPI includes anything purchased by buyers, including remote merchandise.

The subsequent contrast is that the GDP Deflator is a proportion of the costs all things considered and benefits while the CPI is a proportion of just merchandise purchased by shoppers.