The price index that measures the changes in prices of ALL goods and services produced by the economy is the
A)CPI.
B)PPI.
C)GDP deflator.
D)fixed-quantity index.

Question

Quizplus · Accepted Answer

The GDP deflator is the price index that measures changes in prices of all goods and services produced by the economy, including capital goods and government services, whereas the Consumer Price Index (CPI) only measures changes in prices of goods and services purchased by households. The Producer Price Index (PPI) measures changes in prices at the wholesale level, and the fixed-quantity index is not a commonly used measure of inflation.

The Price Index That Measures the Changes in Prices of ALL