Which Statement Describes a Difference Between the Consumer Price Index

question 268

Multiple Choice

Which statement describes a difference between the consumer price index (CPI) and the producer price index (PPI) ?

• A) Only the CPI is associated with the problem of quality changes.
• B) Only the PPI is associated with the problem of eliminating goods and services from the basket.
• C) Only the PPI measures net revenues received by firms.
• D) Only the PPI has a fixed market basket.

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