Asked by Teesean Patterson on May 30, 2024
Verified
The PPI is a price index that measures the cost to consumers of a typical basket of goods sold by firms.
PPI
Producer Price Index, a measure of the average change over time in the selling prices received by domestic producers for their output.
Basket of Goods
A set of products or commodities compiled for the purpose of monitoring price changes in the market over time.
- Distinguish between various price indices like Core CPI, PPI, and their relevance to consumer costs and inflation.
Verified Answer
CM
Courtney McKinneyMay 31, 2024
Final Answer :
False
Explanation :
The PPI (Producer Price Index) measures the average change over time in the selling prices received by domestic producers for their output, not the cost to consumers of a typical basket of goods.
Learning Objectives
- Distinguish between various price indices like Core CPI, PPI, and their relevance to consumer costs and inflation.