Question

Question 14 2 pts Of the items below, which one would be included in the United States' CPI but not the United States' GDP deflator? (Assume all the items below are bought by American consumers.) Water thermos produced in Arizona Electric fan produced in South Carolina Kleenex box made in California Table produced in Italy None of the above Question 15 2 pts We have a separate country known as Amanda-ville. The GDP per capita in 2010 was $18,000 in 2010 dollars. While in 2018, the GDP per capita was $20,725 in 2018 dollars. The CPI in 2010 is 218 while the CPL in 2018 is 251. How would you characterize the growth in GDP per capita from 2010 to 2018? Impressive Good but not spectacular Nonexistent as the GDP per capita in both years are nearly the same in terms of purchasing power Horrible because the GDP per capita in 2018 is much lower in terms of purchasing power Not enough information

Answer 1

Ques 14. Table produced in Italy will be included in United State's CPI and not in GDP deflator because GDP deflator only takes into account those goods and services which are produced domestically.

Ques 15. The correct answer is non-existent as the GDP per capita in both years are nearly the same in terms of purchasing power.