The importance of lies in formulation of price policy, wage adjustment, measurement of real value and national income deflator.
A
WPI
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B
PPI
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C
CPI
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D
IIP
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Solution
The correct option is C CPI CPI is used by the government, to a great extent, to frame price policies, fiscal and other economic policies. It is also used as a basis for dearness allowance, wage agreements. Furthermore, it is used to measure the purchasing power of the currency and the actual change in national income is estimated.