What does the government use to evaluate the impact of inflation?
A) the consumer price index (CPI) and producer price index (PPI)
B) productivity and unemployment
C) inflation and disinflation
D) monetary policy and fiscal policy

Question

Quizplus · Accepted Answer

The consumer price index (CPI) and producer price index (PPI) are commonly used by governments to evaluate the impact of inflation on the economy. CPI measures changes in the prices of goods and services that the average household buys, while PPI measures changes in the prices of goods and services at the wholesale level. Together, these indices provide insights into the price trends that affect consumers and producers, allowing policymakers to adjust their economic policies accordingly.

What Does the Government Use to Evaluate the Impact of Inflation