Which price index measures the average price received by producers?
A) the consumer price index
B) the GDP deflator
C) the producer price index
D) the wholesale price index

Question

Quizplus · Accepted Answer

The producer price index measures the average price received by producers for their goods and services. It provides insight into inflationary pressures faced by producers, which can ultimately impact consumer prices. The consumer price index measures the average price paid by consumers for goods and services, while the GDP deflator measures the price level of all goods and services produced in an economy. The wholesale price index measures the average price received by wholesalers for their goods, but it is not as commonly used as the producer price index.

Which Price Index Measures the Average Price Received by Producers