The broadest measure of inflation is the
A) consumer price index.
B) GDP deflator.
C) personal consumption expenditures index.
D) producer price index.

Question

Quizplus · Accepted Answer

The GDP deflator is the broadest measure of inflation as it includes prices across the entire economy, including investment goods, government spending and net exports, whereas the consumer price index only measures prices for goods and services purchased by households. The personal consumption expenditures index also only measures prices for household purchases, while the producer price index only measures prices for goods and services at the producer level.

The Broadest Measure of Inflation Is the