Suppose that in 2010,the producer price index increases by 1.5 percent.As a result,economists most likely will predict that
A)GDP will increase in 2011.
B)the producer price index will increase by more than 1.5 percent in 2011.
C)interest rates will decrease in the future.
D)the consumer price index will increase in the future.

Question

Quizplus · Accepted Answer

An increase in the producer price index (PPI) often indicates that producers are facing higher costs, which they may pass on to consumers, leading to an increase in the consumer price index (CPI) in the future.

Suppose That in 2010,the Producer Price Index Increases by 1