Which of the following price indexes is designed to measure changes in the prices of goods and services purchased by a typical individual?
A) Producer Price Index
B) Gross Domestic Product (GDP) Deflator
C) Index of Leading Economic Indicators
D) Consumer Price Index

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) is designed to measure changes in prices of goods and services purchased by a typical individual. The Producer Price Index (PPI) measures changes in prices received by producers of goods and services. The Gross Domestic Product (GDP) Deflator measures changes in prices of all goods and services produced in an economy. The Index of Leading Economic Indicators is a composite index of several different indicators used to predict future economic activity.

Which of the Following Price Indexes Is Designed to Measure