Because Increases in Input Prices Eventually Make It to Consumers

question 58

Multiple Choice

Because increases in input prices eventually make it to consumers when they buy the final product, the PPI:

• A) is considered a good predictor of future consumer prices.
• B) is a lag variable for inflation.
• C) accounts for inflation before it reaches consumers, adjusting the CPI downward.
• D) accounts for inflation before it reaches consumers, adjusting the CPI upward.

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Definitions:

Chromosomes

Cellular components that hold DNA and transmit genetic data.

Species

A species is a group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding, forming a reproductive group.

Punctuated Equilibrium

The idea that evolution proceeds with periods of little or no genetic change, followed by very active phases, so that major adaptations or clusters of adaptations appear suddenly in the fossil record. Compare with phyletic gradualism.

Gradualism

A concept in evolutionary biology that suggests changes occur slowly and incrementally over long periods of time.