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of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy.
of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The GDP deflator for this year is calculated by dividing the However, the CPI reflects only the prices of all goods and services using using by the and multiplying by 100. Indicate whether each scenario will affect the GDP deflator or the CPI for the United States. Check all that apply. Scenario A decrease in the price of a Smooth Streets Industries pothole puncher, which is commercial construction equipment made in the U.S. but not bought by U.S. consumers An increase in the price of a South Korean-made furniture that is popular among U.S. consumers Shows up in the... GDP Deflator CPI 0
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