Changes in the Producer Price Index Are Often Thought to Be

question 43

Multiple Choice

Changes in the producer price index are often thought to be useful in predicting changes in

• A)stock prices.
• B)the consumer price index.
• C)the unemployment rate.
• D)the rate of output of goods and services.

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Definitions:

Technological Advance

The development and application of innovative tools, machines, materials, and processes, improving efficiency and productivity.

Supply Increase

A shift to the right in the supply curve, indicating that producers are willing and able to sell more of the good at each possible price.

Jet Fuel

A type of aviation fuel designed for use in aircraft powered by gas-turbine engines.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell.