Suppose that U.S. mining companies purchase German-made ore trucks at a reduced price. By itself, what effect will this purchase have on the GDP deflator and on the consumer price index?
a. The consumer price index and the GDP deflator will both fall.
b. The consumer price index and the GDP deflator will both be unaffected.
c. The consumer price index will fall, and the GDP deflator will be unaffected.
d. The consumer price index will be unaffected, and the GDP deflator will fall.
b
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If inflationary expectations are stable and there is no current inflation, the short-run Phillips curve will intersect the long-run Phillips curve at: a. a 0 percent unemployment rate
b. a 2 percent unemployment rate. c. a 4 percent unemployment rate. d. the natural rate of unemployment.
If buyers and sellers in a certain market are price takers, then individually
a. they have no influence on market price. b. they have some influence on market price but that influence is limited. c. buyers will be able to find prices lower than those determined in the market. d. sellers will find it difficult to sell all they want to sell at the market price.