The Most Widely Used Measure of Inflation Is Based on Which

question 261

Multiple Choice

The most widely used measure of inflation is based on which of the following price indices?

• A)the producer price index
• B)the consumer price index
• C)the GDP deflator
• D)the wholesale price index

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Definitions:

Parity Ratio

A measure used in agriculture to compare the relative purchasing power of income from farming to a base period.

Prices Received

Prices received refer to the amount of money sellers receive for their goods and services in the market after deducting any sales discounts and allowances.

Prices Paid

The actual amount of money expended by buyers to acquire goods or services.

Price Support Programs

Government interventions to maintain the market price of a commodity or product above its equilibrium level to benefit the producers.