Changes in the Producer Price Index (PPI) Can Predict Changes

Multiple Choice

Changes in the producer price index (PPI) can predict changes in the consumer price index (CPI) because:​

A) interaction between supply and demand results in an equilibrium price.​
B) ​they are computed using the same market basket.
C) ​producers pass on price increases to consumers within a month or two of the changes.
D) ​consumers and producers often buy the same goods.