Question
Which of the following statements regarding WPI is/are
correct? 1. WPI focuses on the average wholesale prices of goods at basic prices. 2. Taxes and transportation costs are included in the WPI calculation. 3. WPI is used to calculate the GDP deflator. 4. Services are included in the WPI basket.Solution
WPI focuses on wholesale prices excluding taxes and transport costs and is used for GDP deflator calculation. Services are not included in WPI.
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