Please answer this 4 questions.

What of the following statements about CPI and GDP deflator is correct? O The CPI is the measure of consumer prices. The GDP deflator is the measure of producer prices. O Both the CPI and the GDP deflator measure the price level based on the consumption patterns of a typical consumer. O The CPI is a price level. The GDP deflator is also a price level. O The CPI is a measure of food, clothing, and housing prices. The GDP deflator is a measure of raw materials prices.If 50% of all goods in the consumer price index (CPI) became more expensive and 50% became cheaper O inflation would certainly occur. O deflation would certainly occur. O inflation or deflation could occur, depending on the weight of these goods in the basket of goods and the actual percentage changes. O deflation would certainly occur if the price of housing was one of the goods that fell. O inflation would occur if the goods whose prices increased did so by the same percentage as the goods whose prices decreased.Question 3 1.5 pts You pay more taxes than you should because of inflation. This problem is best described as O menu costs. O tax distortions. O future price uncertainty. O deflationary price pressures. O present value/future value uncertainty.For each of the following separate situations, determine the associated problem of ination. - Shoeleather cost - money illusion - menu costs - future price leyel uncertainty - wealth redistribution - price confusion - tax distortions Your loyal customers stopped eating at your restaurants because you raised prices. ' [Choose] V' With the income tax cut of 2% this year, people belieye they are richer and spend more in holiday seasons. ' [Choose] v' Sam does not want to lend money to his friend because of the ination risk. | [Choose] V' A student claimed that oil prices went up because the supply of oil went down. ' [Choose] V' Should I design some new clothes for sales? It takes me more than six months to design and make the clothes. I am not sure how much I can sell for those clothes in the future. ' [Choose] v' To offset ination, | buy stocks and bonds. It takes me so much time to pick those stocks and [Choose] v