Which price index measures prices of both intermediate and final goods?
A) Consumer Price Index (CPI)
B) Producer Price Index (PPI)
C) GDP inflator
D) GDP deflator

Question

Quizplus · Accepted Answer

The Producer Price Index (PPI) measures the average changes in prices received by domestic producers for their output, including both intermediate and final goods. The Consumer Price Index (CPI) measures changes in prices of a basket of goods and services purchased by households, but does not cover intermediate goods. The GDP deflator and inflator both measure changes in the overall level of prices in an economy, but do not differentiate between intermediate and final goods.

Which Price Index Measures Prices of Both Intermediate and Final