Question

Consider the following statements regarding the GDP Deflator as an inflation indicator: 1. The GDP Deflator is considered a broad measure of inflation as it reflects the overall price level of the economy. 2. The GDP Deflator is more comprehensive than the CPI because it includes government spending and capital goods. 3. The GDP Deflator is updated less frequently than the CPI and WPI. Which of the above statements are correct?

A 1 and 2 only
B 2 and 3 only
C 1 and 3 only
D 1, 2, and 3
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