16 The CPI differs from the GDP deflator in that the CPI is

16. The CPI differs from the GDP deflator in that the CPI is a price index, while the GDP deflator is an inflation index. firms show up in the CPI but not in the GDP deflator show up in the CPI but not in the GDP deflator government show up in the CPI but not in the GDP deflator. (a) (b) increases in the prices of foreign produced capital goods that are sold to U.S. (c) increases in the prices of foreign produced goods that are sold to U.S. consumers (d) increases in the prices of domestically produced goods that are sold to the U.S.

Solution

Option C.