_____ is an index of the average prices for all goods and services in the economy and is the broadest measure of inflation.
A) The consumer price index
B) The producer price index
C) Personal consumption expenditure
D) The GDP deflator

Question

Quizplus · Accepted Answer

The GDP deflator measures the level of prices for all goods and services that are included in the gross domestic product (GDP). It is a more comprehensive measure of inflation compared to other indices like the consumer price index, which only tracks prices for a selected basket of goods and services that the average consumer purchases. The producer price index measures the change in prices for goods sold by manufacturers and wholesalers, while personal consumption expenditure tracks the spending patterns of individuals and households on goods and services.

_____ Is an Index of the Average Prices for All