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Assume that the U.S imports coffee from Columbia on regular basis. In a particular year due to increased production of coffee in Columbia, the price
Assume that the U.S imports coffee from Columbia on regular basis. In a particular year due to increased production of coffee in Columbia, the price of coffee decreases. As a result a. it will cause the GDP deflator to decrease but the CPI will not change. b. it will cause the CPI for the U.S to decrease but will cause no change in the U.S GDP deflator. c. it will have no affect either on the CPI or GDP deflator of the U.S. d. it will cause both the CPI and the GDP Deflator for the U.S to decrease
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