In general, if a consumer good is produced domestically and consumed domestically, an increase in its price will have which of the following effects?
a. The consumer price index will increase relatively more than will the GDP deflator.
b. The consumer price index and the GDP deflator will increase by the same amount.
c. The consumer price index will increase relatively less than will the GDP deflator.
d. One cannot generalize about the increase in the consumer price index relative to the increase in the GDP deflator.
a
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a. True b. False Indicate whether the statement is true or false
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a. True b. False Indicate whether the statement is true or false
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