Which of the following figures is used to measure changes in the prices that firms pay for goods and services?
A)producer price index
B)consumer price index
C)GDP deflator
D)cost of living index

Question

Quizplus · Accepted Answer

The producer price index measures changes in the prices that firms pay for goods and services before those goods and services reach the consumer level. This is different from the consumer price index, which measures changes in the prices that consumers pay for goods and services. The GDP deflator measures changes in the prices of all goods and services produced in an economy, while the cost of living index measures changes in the prices of goods and services that households typically purchase.

Which of the Following Figures Is Used to Measure Changes