Both CPI and the GDP deflator measure the change in the price of goods and services and

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Both CPI and the GDP deflator measure the change in the price of goods and services and tend to change in similar ways over time. In 2021, CPI rose by 4.7%, while the GDP deflator rose by 4.1%. Explain what might lead them to rise at different rates using what you know about the differences between CPI and the GDP deflator.

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Principles Of Economics

ISBN: 9781319330156,9781319419769

2nd Edition

Authors: Betsey Stevenson, Justin Wolfers

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