Answer to Question #80798 in Macroeconomics for AYANDA

Question

The production price index...

1) Represents the supply side of the economy
2) Reflects the cost of living standards
3) Can only be calculated on annual bases
4) Takes all goods and services into consideration

Answer 1

1) Represents the supply side of the economy.
A producer price index is a price index that measures the average changes in prices received by domestic producers for their output.