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) Gross Domestic Product (GDP) deflator.
D) Personal Consumption Expenditure Index.

Question

Quizplus · Accepted Answer

The Gross Domestic Product (GDP) deflator is a price index that measures the changes in prices of all goods and services produced by an economy. It includes not only consumer goods and services, but also investment goods, government purchases, and exports. Therefore, it represents a more comprehensive measure of inflation than the Consumer Price Index (CPI) or the Producer Price Index (PPI), which only track the prices of specific goods and services. The Personal Consumption Expenditure Index is also a measure of inflation, but it only includes consumer goods and services.

The Price Index That Measures the Changes in Prices of ALL