5
QuizMultiple Choice

GDP and Changes in the Price Level

Question 5 • VT-GA-EOC-Personal Finance & Economics A ULHS

What index measures price changes received by domestic producers for their output?

Answer
A
consumer price index
B
producer price index
C
implicit GDP price deflator
D
sales price index

Explanation

The producer price index measures changes in the prices domestic producers receive for their goods and services. Therefore, the correct choice is “producer price index.” The consumer price index instead tracks prices paid by consumers.

AI-written and checked against the verified answer.

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