Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The CPI for this year is calculated by dividing the using by the using and multiplying by 100. However, the GDP deflator reflects only the prices of all goods and services . Indicate whether each scenario will affect the GDP deflator or the CPI for the United States. Check all that apply.
Shows up
in the... GDP
Scenario Deflator CPI
A decrease in the price of a Treewood Equipment feller buncher,
which is a commercial forestry machine made in the U. S. but not bought by U. S. consumers
An increase in the price of a Chinese-made television that is popular among U. S. consumers