The GDP deflator differs from the CPI in its measurement of inflation in that:
A. it measures the price changes of all goods, not just those in a typical consumer's basket.
B. it uses the total quantities that are produced, not the ratio of what a typical consumer might consume.
C. it does not include imports, which may have a real effect on the typical consumer's cost of living.
D. All of these statements are true.
Answer: D
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