How does the GDP deflator differ from other inflation measures like the Consumer Price Index (CPI)?
1
GDP deflator only accounts for imported goods and services, unlike CPI.
2
GDP deflator is a broader measure, including all domestically produced goods and services.
3
GDP deflator tracks inflation based on consumer spending habits over time.
4
CPI adjusts GDP values for price changes, whereas the GDP deflator does not.
5
Both GDP deflator and CPI exclude price changes in the service sector.