The PPI is considered a good predictor of future consumer prices because increases in input prices:
A) eventually make it to consumers when they buy the final product.
B) are accounted for in the PPI, which then automatically adjusts the CPI.
C) tend to immediately translate into changes in the wage rate.
D) are used by consumers to make purchasing decisions.
Correct Answer:
Verified
Q37: One problem with keeping the CPI basket
Q38: The table shown displays CPI data for
Q39: As new goods and services become available,
Q40: The consumer price index is calculated by
Q41: When the CPI increases from one year
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
Q46: Which statement about the PPI is true?
A)
Q47: When the CPI increases from one year
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