The ____ is a change index,and generally a rating over 50 indicates that the economy is expanding.
A) Consumer Price Index
B) Producer Price Index
C) ISM Report on Business
D) rate of inflation
E) None of these choices.

Question

Quizplus · Accepted Answer

The ISM Report on Business is a widely used economic indicator that measures the business activity of purchasing managers in different sectors of the economy. The index is based on a survey where purchasing managers rate various business factors including new orders, production, and inventory. A rating above 50 indicates that the economy is expanding, whereas a rating below 50 indicates that the economy is contracting. Therefore, choice C is the most suitable answer. A is incorrect as it measures the average change in prices at the consumer level, B measures the average change in prices a producer receives, and D does not indicate expansion or contraction of the economy.

The ____ Is a Change Index,and Generally a Rating Over