Question: The difference between the formulae used in the computations of CPI and GDP deflator is a) The CPI uses a Laspeyer Index, whereas the GDP

The difference between the formulae used in the

The difference between the formulae used in the computations of CPI and GDP deflator is a) The CPI uses a Laspeyer Index, whereas the GDP deflator uses a Paasche index b) The CPluses a Paasche Index, whereas the GDP deflator uses a Laspeyer index c) The CPI uses a geometric mean of price relatives, whereas the GDP deflator uses an arithmetic average d) The CPI uses an arithmetic average of price relatives, whereas the GDP deflator uses a geometric mean

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