Which measure of the average price level most closely corresponds to a student's daily economic activities?
A) consumer price index
B) producer price index
C) GDP deflator
D) household price index

Question

Quizplus · Accepted Answer

The consumer price index (CPI) measures the average prices of goods and services typically consumed by households, such as food, transportation, housing, and healthcare. This makes it the best measure for a student's daily economic activities as it reflects the prices they are most likely to encounter in their everyday life. The producer price index (B) measures the prices of goods and services at the wholesale level, while the GDP deflator (C) is an indicator of the overall price level of the economy. The household price index (D) is not a commonly used measure of the price level.

Which Measure of the Average Price Level Most Closely Corresponds