An increase in the price of dairy products produced domestically will be reflected in a. both the GDP deflator and the consumer price index. b. the GDP deflator but not in the consumer price index. c. neither the GDP deflator nor the consumer price index. d. the consumer price index but not in the GDP deflator.

a. both the GDP deflator and the consumer price index.

Explanation:

The Gross Domestic Products (GDP) is the measure of the total market value of all finished goods and services made within a country during a specific period.

Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.

The CPI (Consumer Price Index) overstates the underlying inflation rate because when the price of a commodity rises, consumers tend

to purchase less of it and seek for

substitutes instead. Conversely, as the price of a commodity falls, consumers tend to purchase more

of it.

Hence, an increase in the price of dairy products produced domestically will be reflected in both the GDP deflator and the consumer price index.

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1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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