The wholesale price index is used to forecast demand and supply scenario in an economy.

True

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False

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Solution

The correct option is A
True

An increase in WPI is an indication of excess demand. It is a situation in which demand is greater than supply. On the other hand, a decrease in WPI indicates lower demand. It is a situation in which demand is less than supply.

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Similar questions

Which of the following statement(s) is/are correctly stated?

Codes :

(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.

Savings deposits are not a part of money supply of an economy. State true or false.

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