Question

Indicate whether each scenario wll affect the GDP deflator or the CPI for the United States,

Shows up in the.
GDP Scenario
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
An increase in the price of a German-made phone that is popular among U.S. consumers Deflator CPI.

Answer 1

1st scenario shows the GDP deflator and second shows the CPI.

Step-by-step explanation:

The consumer price index (CPI) is determined by dividing the market price of commodities (basket) with the base year prices of that basket or commodity and then multiply with a hundred. The CPI reflects only the price of goods and services brought by the consumer.

Therefore, the first scenario price of a treewood is the GDP deflator and the second scenario is CPI.