+3 votes
in Class 12 by kratos

Write down the usefulness of Consumer Price index or cost of living index?

1 Answer

+5 votes
by kratos
 
Best answer
  1. It is helpful in wage negotiation.

  2. It is helpful in the formation of income Policy, Price Policy taxation and general economic policy formulation.

  3. It is used in calculating the purchasing power of money.

  4. With the help of CPI, we can calculate the real wages.

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