Given below are two statements one is labelled as Assertion (A) and other as Reason (R):

Assertion (A) : GDP deflator does not include prices of imported goods

Reason (R) : Consumer Price Index (CPI) includes prices of goods consumed by the representative consumer, hence it includes prices of imported goods.

1
Both (A) and (R) are true and (R) is correct explanation of (A)
2
Both (A) and (R) are true, but (R) is not correct explanation of (A)
3
(A) is true, but (R) is false
4
Both (A) and (R) are false

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