Consider the following statements 1 Wholesale Price Index WPI is an indicator of the inflation ...........

Economic Affairs Growth and Indicators

Consider the following statements:

1. Wholesale Price Index (WPI) is an indicator of the inflation which captures only the changes the goods and does not include service sector

2. Unlike WPI, GDP deflator captures the change of value of all the goods and services in the country.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

छोटे Courses बड़े Results

Master Growth and Indicators

Prepare through Micro-courses

Try Now

Explanation:

Both 1 and 2

Statement 1 is incorrect. The Wholesale Price Index (WPI) does not capture only changes in goods; it covers changes in the prices of goods as well as services at the wholesale level.

Statement 2 is correct. The GDP deflator is a measure of the overall price level of goods and services included in the gross domestic product (GDP). It reflects changes in the prices of all goods and services produced in an economy.

Therefore, option 3, stating that both statements 1 and 2 are correct