Ask Experts Questions for FREE Help !
Ask
    mattcarter15's Avatar
    mattcarter15 Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Feb 2, 2009, 06:05 AM
    CPI/GDP Deflator
    For a closed economy, it is impossible for the GDP deflator and the CPI to move into opposite directions (for example, the GDP deflator increases while the CPI falls). Is this true or false and why?
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
    		  
    #2

    Feb 2, 2009, 06:06 AM
    Thank you for taking the time to copy your homework to AMHD.
    Please refer to this announcement: Ask Me Help Desk - Announcements in Forum : Homework Help
    mattcarter15's Avatar
    mattcarter15 Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Feb 2, 2009, 06:21 AM
    I think the answer is this... but I'm not too sure. There are mainly two reasons the CPI and the GDP deflator move differently. First of all, the reason by the difference of the target affects this gap widely, besides the other reason such as the formula affects this gap, too.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


View more questions Search