Question

Scenario Shows up in the... GDP Deflator CPI An increase in the price of a Chinese-made car that is popular among U.S. consumers A decrease in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-sea fishing, made in the U.S., but not bought by U.S. consumers

Answer 1

The deflator reflects the prices of all domestically produced products. The price change will not impact the consumer price index because commercial fishing equipment is not bought by a typical US consumer.

Step-by-step explanation: