A decrease in the price of domestically produced juice maker will be reflected in

A decrease in the price of domestically produced juice maker will be reflected in
a.
both the GDP deflator and the consumer price index.
b.
neither the GDP deflator nor the consumer price index.
c.
the GDP deflator but not in the consumer price index.
d.
the consumer price index but not in the GDP deflator.

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Answer

• both the GDP deflator and the consumer price index.
  Explanation:
  Juice maker is a consumer good, hence a change in the price of juice maker will be reflected in the consumer price index. When there is a decrease in prices, there is a decline in the consumer price index. GDP deflator on the other hand, shows the level of prices for all new, and domestically produced goods and services, which would also indicate a decrease in the price of juice maker.