John complained to his buddy,Frank,that the prices of all the goods he and his family buy have increased a lot over the past year.Frank disagreed,saying that the prices of some goods have gone up a bit,but other prices have declined.Frank feels that the average price of consumer goods hasn't changed very much.In order to resolve their disagreement,John and Frank should look at recent figures for the:
A)GDP
B)CPI
C)PPI
D)MEW

Question

Quizplus · Accepted Answer

The CPI (Consumer Price Index) measures the average change in prices paid by consumers for a basket of goods and services. It is a commonly used indicator of inflation, which can impact the buying power of consumers like John. By looking at recent figures for CPI, they can determine if the average price of goods has gone up or down. GDP (A) measures the total value of goods and services produced in a country, while PPI (C) measures changes in the prices of goods and services purchased by producers. MEW (D) stands for "marginal propensity to consume out of wealth" and is not relevant to this situation.

John Complained to His Buddy,Frank,that the Prices of All the Goods