Distinguish Between The GDP Deflator and The Consumer Price Index
1. The GDP deflator measures a changing basket of commodities while CPI always indicates the price of a fixed representative basket.
2. GDP deflator frequently changes weights while CPI is revised very infrequently.
3. CPI will consider imported goods because they are still considered as consumer goods while GDP deflator will only contain prices of domestic goods.
Read more: Difference Between CPI and GDP Deflator | Difference Between | CPI vs GDP Deflator http://www.differencebetween.net/business/finance-business-2/difference-between-cpi-and-gdp-deflator/#ixzz15VVahfFH
Read more about this topic: Measuring GDP
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