Which of the three price indexes measures the average price level of the largest total number of goods?
A) the consumer price index
B) the GDP deflator
C) the producer price index
D) wholesale price index

Question

Quizplus · Accepted Answer

GDP deflator measures the average price level of goods and services included in GDP, which is the largest total number of goods. The consumer price index (A) is a measure of the average price level of goods and services purchased by households while the producer price index (C) and wholesale price index (D) measure changes in prices at earlier stages of production.

Which of the Three Price Indexes Measures the Average Price