Answer to Question #71572 in Macroeconomics for Sky

Question

Which is the correct multiple choice answer?

The GDP deflator is not suitable as a measure of household inflation because,
a) it does not include intermediate goods
b) it does not include primary products
c) it does not include changes to the prices of imported final goods
d) it focuses on the costs of production, not costs of consumer goods
e) GDP is used to measure household welfare

Answer 1

The GDP deflator is not suitable as a measure of household inflation because,
c) it does not include changes to the prices of imported final goods