a) Explain the difference between calculation of inflation through CPI and through the GDP deflator. Hint: think about which type of goods are considered for calculating inflation in each case.
a) Explain the difference between calculation of inflation through CPI and through the GDP deflator. Hint: think about which type of goods are considered for calculating inflation in each case.
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
Problem 17P
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Transcribed Image Text:a) Explain the difference between calculation of inflation through CPI and through the GDP
deflator.
Hint: think about which type of goods are considered for calculating inflation in each case.
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