The importance of lies in formulation of price policy, wage adjustment, measurement of real value and national income deflator.

WPI

No worries! We‘ve got your back. Try BYJU‘S free classes today!

PPI

No worries! We‘ve got your back. Try BYJU‘S free classes today!

CPI

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

IIP

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

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.

Suggest Corrections

Similar questions

(I) The change in any price is reflected in an index number.

(II) The wholesale price index can be used to measure the monetary and real value of national income and expenditure.

The value of national income adjusted for inflation is called _______.

Join BYJU'S Learning Program