An increase in the price of a German-made car that is popular among U. S. consumers 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?

CPI, GDP DEFLATOR

Explanation:

The increase in the price of the Chinese-made car will show up in the U.S. CPI, because it reflects the prices of products purchased by typical U.S. consumers. The price change will not affect the GDP deflator, because the GDP deflator reflects the prices of domestically produced goods and services.

The decrease in the price of the forestry equipment will show up in the GDP deflator, because the deflator reflects the prices of all domestically produced products. The price change will not impact the consumer price index, because commercial forestry equipment is not bought by a typical U.S. consumer.

d.

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