Economics Today: The Macro View (19th Edition) (Pearson Series in Economics)
Economics Today: The Macro View (19th Edition) (Pearson Series in Economics)
19th Edition
ISBN: 9780134478760
Author: Roger LeRoy Miller
Publisher: PEARSON
Question
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Chapter 7, Problem dFCT
To determine

How PPI and CPI are likely to diverge with an increase in import prices.

Concept introduction:

PPI is an index that measures the average prices at which producers sell their goods and services domestically.

CPI is an index that measures the average price of goods and services purchased by the domestic consumer including prices of imported goods.

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