AP Macroeconomics Question 121: Answer and Explanation

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Question: 121

5. The GDP Deflator

I. is used to calculate inflation rates.

II. is an alternative to the CPI.

III. is more accurate than the CPI.

  • A. Only I is true.
  • B. I and II are true.
  • C. I and III are true.
  • D. II and III are true.
  • E. I, II, and III are true.

Correct Answer: B