The Producer Price Index Is Considered a Good Predictor of Future

question 41

Multiple Choice

The producer price index is considered a good predictor of future consumer prices because:

• A)increases in input prices eventually make it to consumers when they buy the final product.
• B)increases in input prices are accounted for in PPI,and therefore this automatically adjusts the CPI.
• C)increases in input prices are observed first in the PPI,adjusting the CPI downward.
• D)None of these statements is true.

---

Definitions:

African American

A term referring to Americans of African descent with roots in any of the black racial groups of Africa.

First Nations

Term primarily used in Canada to describe indigenous peoples who are not Inuit or Métis, emphasizing their status as the original inhabitants of the land.

Fatalism

The belief that all events are predetermined and therefore inevitable, rendering human effort and free will irrelevant.

Noninterference

A principle or policy of not becoming involved in the affairs of others, especially in a political or military sense.