A measure of the average price received by suppliers is the:
A) consumer price index.
B) GDP deflator.
C) producer price index.
D) exchange rate.

Question

Quizplus · Accepted Answer

The producer price index (PPI) measures the average change in prices that domestic producers receive for their goods and services. It is a leading indicator of consumer inflation, as changes in producer prices can be passed on to consumers through higher retail prices. The consumer price index (A) measures the average change in prices paid by consumers for goods and services, while the GDP deflator (B) is a measure of the overall price level of goods and services produced in an economy. The exchange rate (D) is the value of one currency in terms of another and is not directly related to producer prices.

A Measure of the Average Price Received by Suppliers Is