Final answer:
If people bought the same market basket of goods as the average consumer again and again, the Consumer Price Index (CPI) would be less accurate, while the Gross Domestic Product (GDP) deflator would be more accurate. Therefore, the correct option is B.
Step-by-step explanation:
The Consumer Price Index (CPI) would be less accurate if people bought the same market basket of goods as the average consumer again and again. The CPI measures the prices of the goods and services purchased by the typical urban consumer, so if people continue to buy the same basket of goods, it would not capture changes in consumer behavior and preferences. Additionally, the CPI is subject to biases such as substitution bias and quality/new goods bias.
On the other hand, the Gross Domestic Product (GDP) deflator would be more accurate in this scenario. The GDP deflator picks up prices of what is actually purchased in a given year, without the biases associated with the CPI. Therefore, the GDP deflator would provide a more accurate measure of inflation if people consistently purchase the same market basket of goods.
Therefore, the correct answer is option b. the CPI would be less accurate.