Question A4 Suppose we construct the CPI and the GDP deflator using the same type of goods. Which of the following is true a) The CPI overstates inflation, the GDP deflator understates inflation b) The CPI understates inflation, the GDP deflator overstates inflation c) Both the CPI and the GDP deflator overstate inflation d) The CPI and GDP deflator may both overstate or understate inflation, it depends on the case considered e) None of the above