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The Relationship Between the Producer Price Index (PPI) and the Consumer

Question 138

Multiple Choice

The relationship between the producer price index (PPI) and the consumer price index (CPI) is such that, in the short run


A) the CPI usually increases before the PPI.
B) the CPI and the PPI usually move simultaneously.
C) the PPI usually increases before the CPI.
D) the CPI and the PPI usually move in opposite directions.

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