Which statement about the PPI is true?
A) The PPI is a good predictor of future consumer prices because increases in input prices eventually make it back to consumers.
B) The PPI is more stable than the CPI over time.
C) The PPI only measures the changes of input prices for firms that manufacture goods abroad.
D) The PPI is the main indicator used by the Federal Reserve to track changes in the price level.
Correct Answer:
Verified
Q41: When the CPI increases from one year
Q42: The PPI is considered a good predictor
Q43: The inflation rate:
A) calculates the percentage change
Q44: Regardless of the index used:
A) inflation is
Q45: The table shown displays CPI data for
Q47: When the CPI increases from one year
Q48: Which of the following goods would be
Q49: Which of the following goods would be
Q50: While the CPI focuses on changes to
Q51: The table shown displays CPI data for
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