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Indicate whether each scenario wll affect the GDP deflator or the CPI for the United States,
Shows up in the.
GDP Scenario
A decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine made in the U.S. but not bought by U.S. consumers
An increase in the price of a German-made phone that is popular among U.S. consumers Deflator CPI.

Respuesta :

Answer:

1st scenario shows the GDP deflator and second shows the CPI.

Explanation:

The consumer price index (CPI) is determined by dividing the market price of commodities (basket)  with the base year prices of that basket or commodity and then multiply with a hundred. The CPI reflects only the price of goods and services brought by the consumer.  

Therefore, the first scenario price of a treewood is the GDP deflator and the second scenario is CPI.

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