The Producer Price Index (PPI) is a
A) statistical measure of a weighted average of prices of a specific set of goods and services purchased by wage earners in urban areas.
B) statistical measure of a weighted average of prices of commodities that firms produce and sell.
C) price index measuring the changes in prices of all new goods and services produced in the economy.
D) price index that tracks the price levee of commodities that firms purchase from other firms.

Question

Quizplus · Accepted Answer

The Producer Price Index (PPI) is a statistical measure of a weighted average of prices of commodities that firms produce and sell. It is different from the Consumer Price Index (CPI), which measures the average change over time in the prices paid by urban consumers for a market basket of goods and services. The PPI is used as an indicator of inflation and can help businesses and policymakers make decisions about pricing and production.

The Producer Price Index (PPI) Is a