There are a number of statistics computed to measure the price level, such as the gdp deflator and the cpi. the choice of the measures to use depends in many cases on the specific question in which you are interested. for each of the following situations, state whether the cpi or gdp deflator is a more appropriate measure to use and explain why the statistic is preferred.
a. you are interested in looking at the impact of higher prices of imported oil in the overall cost of living.
b. the government is interested in whether increases in defense spending are affecting the price level.
c. an economic consulting firm is investigating the impact on the aggregate price level of more computers and electronic technology used in production.

The new york times (nov. 30, 1993) reported that “the inability of opec to agree last week to cut production has sent the oil market into turmoil . . [leading to] the lowest price for domestic crude oil since june 1990.” why were the members of opec trying to agree to cut production? so they could save more oil for future consumption so they could lower the price so they could raise the price why do you suppose opec was unable to agree on cutting production? because each country has a different production capacity because each country experiences different production costs because each country has an incentive to cheat on any agreement the newspaper also noted opec’s view “that producing nations outside the organization, like norway and britain, should do their share and cut production.” what does the phrase “do their share” suggest about opec’s desired relationship with norway and britain? opec would like norway and britain to keep their production levels high. opec would like norway and britain to act competitively. opec would like norway and britain to join the cartel.