Khan Academy
6:28
Khan AcademySal Khan
Khan Academy
Examine the complexities of measuring prices in an economy with multiple goods and services. See how economists use an index to measure changes in prices over time, and to calculate real GDP and nominal GDP. You'll also learn about the GDP deflator, which is used to adjust nominal GDP for inflation in order to get real GDP.
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Question 24What is the main difference between CPI and the GDP Deflator?0.5 ptsThe CPI is an annual check on inflation and the GDP Deflator is a decade check on deflationThe CPI tracks price changes for producers, the GDP Deflator tracks price changes for consumersThe CPI tracks inflation, the GDP Deflator tracks hyperinflationThe CPI tracks price changes for consumers, the GDP Deflator tracks all price changes for everyone(consumers, producers, and the government)
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