_____ is an index of the average prices for all goods and services in the economy,the broadest measure of inflation.
A) The consumer price index
B) The producer price index
C) Personal consumption expenditure
D) The GDP deflator

Question

Quizplus · Accepted Answer

The GDP deflator measures the price level of all final goods and services produced in an economy, regardless of whether they are sold domestically or exported. It is considered the broadest measure of inflation as it covers a wider range of goods and services than the other options listed. The Consumer Price Index (A) measures the prices of a specific basket of goods and services typically purchased by households, while the Producer Price Index (B) measures the prices of goods and services at the wholesale level. Personal Consumption Expenditure (C) measures the prices of goods and services purchased by households but is not as broad as the GDP deflator as it only considers personal consumption.

_____ Is an Index of the Average Prices for All