The producer price index is an accurate predictor of
A) future changes in the consumer price index.
B) the level of unemployment.
C) prime interest rates.
D) Internet business activity.
E) an individual's standard of living.

Question

Quizplus · Accepted Answer

The producer price index measures the changes in prices that producers receive for their goods and services, which can affect the costs and prices for consumers. Therefore, it is often used as an indicator of future changes in the consumer price index, which measures the changes in prices of goods and services purchased by households.

The Producer Price Index Is an Accurate Predictor of