Which of the following indexes tracks changes in the average prices paid by consumers?
A)CPI.
B)PPI.
C)GDP deflator.
D)The market basket.

Question

Quizplus · Accepted Answer

CPI (Consumer Price Index) is specifically designed to track changes in the prices paid by consumers for goods and services. PPI (Producer Price Index) tracks changes in prices at the wholesale level, GDP deflator measures changes in prices of all new goods and services in the economy, and the market basket is a hypothetical set of goods and services used to represent the overall cost of living, but not a specific index.

Which of the Following Indexes Tracks Changes in the Average