Question: A Japanese company produces biscuits in Australia and exports all of them to China. If the price of the biscuits increases, then: The GDP deflator

A Japanese company produces biscuits in Australia and exports all of them to China. If the price of the biscuits increases, then:

  • The GDP deflator and the CPI both increase
  • The GDP deflator increases and the CPI is unchanged
  • The GDP deflator is unchanged and the CPI increases
  • The GDP deflator and the CPI are unchanged

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