Which price index measures prices of 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 changes in prices of goods and services purchased by producers or businesses at all stages of production, including intermediate and final goods. The CPI measures the changes in prices of goods and services purchased by households, while the GDP inflator and GDP deflator are both measures of inflation, but specifically reflect changes in the overall level of prices in an economy.

Which Price Index Measures Prices of Intermediate and Final Goods