Describe the three main uses of the Producer Price Index (PPI).

1 answer:

3 0

Contract adjustment. PPI data are commonly used in adjusting purchase and sales contracts. These contracts typically specify dollar amounts to be paid at some point in the future. It is often desirable to include an adjustment clause that accounts for changes in input prices. For example, a long-term contract for bread may be adjusted for changes in wheat prices by applying the percent change in the PPI for wheat to the contracted price for bread. (See Price Adjustment Guide for Contracting Parties.)
Indicator of overall price movement at the producer level. PPIs capture price movement prior to the retail level. Therefore, they may foreshadow subsequent price changes for business and consumers. The President, Congress, and the Federal Reserve employ these data in formulating fiscal and monetary policies.
Deflator of other economic series. PPIs are used to adjust other time series for price changes and to translate those series into inflation-free dollars. For example, constant-dollar gross domestic product data are estimated using deflators based on the PPI.
Measure of price movement for particular industries and products.
Comparison of input and output costs.
Comparison of industry-based price data to other industry-oriented economic time series.
Forecasting.
LIFO (i.e., last-in, first-out) inventory valuation.

You might be interested in

Richard Nixon did ALL of the following as president EXCEPT:

pashok25 [27]

The right answer is (A.) Be Impeaced
On Plato Courses

6 0

3 years ago

Read 2 more answers

How did world war ii affect the power of western imperialist nations?.

Volgvan

Answer:

World war 2 era marked the end of colonialism. If you look at what happened after ww2 you'll see that both in Africa and in Asia, new countries were born from French and British colonies.

This is a direct consequence of the USA being the western superpower, she obliged her former allies to free their colonies. On one hand that has to do with their history, that is to say, a republic born after fighting a king. But it also has an economic explanation; independent countries will probably buy more American goods than colonies.

That worked fine in some countries (Egipt, Irán, India) but did not work at all in others: Vietnam, Iraq, Siria, Uganda, etc.

Finally, all this happened because European colonialist countries did not have any power to achieve any different deal with the USA.

5 0

2 years ago

Why did president Roosevelt refuse to bomb auschwitz or the train tracks leading to it

Cloud [144]

Answer:

The answer is below

Explanation:

Following the refusal of the United States President, Frankli Roosevelt to bomb Auschwitz during world war II, there have been many reasons cited for such a decision. Though not all the reasons were believed to be true, here are the reasons cited:

1. It would lead to military planes ammunitions being taken away from the war front which is not feasible

2. Bombing Auschwitz might be counterproductive as it might kill more news prisoners prove.

3. There is a tendency for such actions might aggravate the anger of the German soldiers.

4 0

3 years ago

1. What are some of the adjectives used to describe the wrestlers and what effect does the repeated use

Mnenie [13.5K]

Answer:

Explanation:

Humiliated

3 0

3 years ago

1. Which president began the modern presidency in which the trend of presidential decision making assumed greater importance tha

ch4aika [34]

Some might say FDR, some might say LBJ, others might say Nixon. The reality is that the power of the Legislative vis a vis the Executive is in constant flux.

In terms of sweeping policy initiatives FDR's administration might be the time when the Presidency took on many of its contemporary roles. The activism of the LBJ administration was a further expansion of the New Deal-era role of the FDR administration. LBJ also was arguably the first president to use the US armed forces in foreign engagements without Congress declaring war (Gulf of Tonkin resolution)--a precedent we have become all too familiar with. In terms of 'imperial pretensions' Nixon assumed all the New Deal, Great Society, civil rights activism, and the ability to intervene militarily of the preceding Presidencies and expanded them to include unfettered use of the CIA and FBI.

7 0

3 years ago