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The Producer Price Index is based on prices paid for supplies and inputs by:
AProducers of goods
BRetail shoppers
CForeign tourists
DLocal governments
Answer & Solution
Correct answer: A. Producers of goods
1. The two main indices track different buyers.
2. The Consumer Price Index is the most commonly cited measure.
3. The Producer Price Index is a different measure.
4. It is based on prices paid for supplies and inputs by producers of goods and services.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 8 'Inflation'_
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