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) Each price index accomplishes the same task.

Question

Quizplus · Accepted Answer

The GDP deflator measures the average price level of all goods and services produced within a country, making it a broader measure than the other two indexes. The consumer price index measures the average price level of goods and services purchased by households, while the producer price index measures the average price level of goods and services purchased by producers.

Which of the Three Price Indexes Measures the Average Price