Quizzol

QUESTION:

Which of the following would likely cause the CPI to rise more than the GDP deflator?

a. An increase in the price of John Deere tractors

b. An increase in the price of military aircraft purchased by the U.S. government

c. An increase in the price of domestically produced fighter planes sold exclusively to Israel

d. An increase in the price of Ford automobiles

e. An increase in the price of BMW automobiles produced in Germany and sold in the United States

ANSWER:

e. An increase in the price of BMW automobiles produced in Germany and sold in the United States

Posted by Cleveland on September 9, 2024