The Producer Price Index Is Considered a Good Predictor of Future

question 67

Multiple Choice

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

• A) eventually make it to consumers when they buy the final product.
• B) are accounted for in PPI, and therefore this automatically adjusts the CPI.
• C) are observed first in the PPI, adjusting the CPI downward.
• D) are used by consumers to make decisions on what to buy.

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Definitions:

Superstructure

A society's shared sense of identity and worldview. The collective body of ideas, beliefs, and values by which a group of people makes sense of the world- its shape, challenges, and opportunities- and understands their place in it. This includes religion and national ideology.

Worldview

The collective body of ideas that members of a culture generally share concerning the ultimate shape and substance of their reality.

Ultimate Shape

The final or most advanced state of development or evolution something achieves, after undergoing various changes or processes.

Cultural Infrastructure

refers to the physical and organizational structures, facilities, and systems that support the cultural activities, heritage, and creative expression within a community or society.