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.
Answer: A
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.