The table on the right shows four major price indices of the US economy the Consumer Price Index (CPI), the Producer Price Index (PPI), the Personal Consumption Expenditure Index (PCE) and the GDP deflator All four indices are used to measure inflation Based on the data from the four indices in the table, which price index suggests the highest rate of inflation between the years 2000 and 2004, and between 1998 and 1999 What were the corresponding rates suggested by these indices? OA. The PPI indicates the highest inflation rate at 4.07% for 2000-2004, the CPI indicates the highest inflation rate of 2.19% for 1998-1999 OB. The CPI indicating the highest inflation rate at 9.69% for 2000-2004; the GDP deflator indicating the highest inflation rate of 1.45% for 1998-1999 OC. The PCE indicating the highest inflation rate of 8 25% for 2000-2004, the GDP deflator indicating the highest inflation rate of 1.45% for 1998-1999 OD. The PPI indicating the highest inflation rate of 10.5% for 2000-2004, the CPI indicating the highest inflation rate of 2.19% for 1998-1999

The table on the right shows four major price indices of the US economy the Consumer Price Index (CPI), the Producer Price Index (PPI), the Personal Consumption Expenditure Index (PCE) and the GDP deflator All four indices are used to measure inflation Based on the data from the four indices in the table, which price index suggests the highest rate of inflation between the years 2000 and 2004, and between 1998 and 1999 What were the corresponding rates suggested by these indices? OA. The PPI indicates the highest inflation rate at 4.07% for 2000-2004, the CPI indicates the highest inflation rate of 2.19% for 1998-1999 OB. The CPI indicating the highest inflation rate at 9.69% for 2000-2004; the GDP deflator indicating the highest inflation rate of 1.45% for 1998-1999 OC. The PCE indicating the highest inflation rate of 8 25% for 2000-2004, the GDP deflator indicating the highest inflation rate of 1.45% for 1998-1999 OD. The PPI indicating the highest inflation rate of 10.5% for 2000-2004, the CPI indicating the highest inflation rate of 2.19% for 1998-1999

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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