GDP deflator is an （       ）price index, whose weights (       ) over time; while CPI is an (        ) price index, whose weights remain (       ) over time.

What is the difference between the CPI and the GDP deflator?Multiple choice question.CPI tracks price changes in a consumer goods and services, while the GDP deflator tracks price changes in all final goods and services.CPI tracks price changes in only consumer goods and services, while the GDP deflator tracks price changes in all intermediate goods and services.CPI tracks price changes in consumer goods and services, while the GDP deflator tracks price changes in only imported goods and services.CPI tracks price changes in all consumer goods and services, while the GDP deflator tracks price changes in only capital goods and services.

Inflation rates calculated using rates of change in the CPI and the GDP deflator are identical.

An increase in the price of goods bought by firms and the government will show up in:Group of answer choicesthe GDP deflator but maybe not in the CPI.both the CPI and the GDP deflator.neither the CPI nor the GDP deflator.the CPI but not in the GDP deflator.

Consumer price index (CPI) is a commonly used measure of:Group of answer choicesThe strength of a currency against a basket of currencies.UnemploymentInflationAggregate demand

Fill in the Blank QuestionFill in the blank question. GDP uses prices from a base year also referred to as constant prices.