Author Question: Most countries tend to follow only one price index to measure the price level in an economy because ... (Read 66 times)

DyllonKazuo · **on:** Jun 30, 2018

Most countries tend to follow only one price index to measure the price level in an economy because all prices rise or fall at the same time or by the same amount.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Since there are smaller fluctuations in the equilibrium prices of final goods than in the prices of intermediate goods, the producer price index is more volatile than the consumer price index.
a. True
b. False
Indicate whether the statement is true or false