how would an increase in the price of Starbucks coffee effect the CPI and GDP deflator?     both would rise     CPI would raise but the deflator would stay constant     CPI would stay constant but the deflator would rise     both would fall

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: Measuring The Cost Of Living
Section16.1: The Consumer Price Index
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how would an increase in the price of Starbucks coffee effect the CPI and GDP deflator?

   

both would rise

   

CPI would raise but the deflator would stay constant

   

CPI would stay constant but the deflator would rise

   

both would fall

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