The index most widely used by the government and the private sector to measure changes in the cost of living is the
A) Producer Price Index.
B) Consumer Price Index.
C) the GDP deflator.
D) the chain-weighted price index.

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) is the most widely used index by the government and private sector to measure changes in the cost of living. It measures the average change over time in the prices paid by consumers for a market basket of goods and services. The Producer Price Index (PPI) measures changes in the prices received by producers for their goods and services, and the GDP deflator measures the average price level of all goods and services produced in an economy. The chain-weighted price index is a more sophisticated measure of inflation that takes into account changes in the quantities of goods and services consumed, but it is not as widely used as the CPI.

The Index Most Widely Used by the Government and the Private