Suppose that the prices of capital goods (goods purchased by firms as investment) rose. How would the GDP deflator change: Decrease, Increase or No change? How would the CPI change: Decrease, Increase, or No change? GDP deflator: CPI:

Macroeconomics: Principles and Policy (MindTap Course List)
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Author:William J. Baumol, Alan S. Blinder
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Chapter6: How Statisticians Measure Inflation
Section6.A: How Statisticians Measure Inflation
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Suppose that the prices of capital goods (goods purchased by firms as investment) rose. How would the
GDP deflator change: Decrease, Increase or No change? How would the CPI change: Decrease, Increase, or
No change?
GDP deflator:
CPI: 

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