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An increase in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine that cuts and stacks trees. Does this affect the GDP deflator or CPI for U.S.?

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Answer: IT WILL AFFECT THE GDP DEFLATOR

Explanation: GDP DEFLATOR is a term used to describe the total change in price of all goods produced within an Economy,an increase in the price of the Tree wood equipment will only affect the GDP DEFLATOR.

GDP DEFLATOR shows the changes in a country's GDP as price level changes.

CPI ( Consumer price index) is the weighted average price of a basket of consumer goods sold within an Economy such as food,clothing, transportation etc.

It doesn't deal with commercial products like the TREEWOOD EQUIPMENT.

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