Question

The government of lenzerbia, a country in south asia, monitors its inflation rate using an index that measures change over time in the prices that businesses pay to each other for goods and services. In this scenario, the lenzerbian government most likely uses the _____ to evaluate inflation.

Answer 1

Businesses pay to each other for goods and services

Answer 2

Answer: Producer price index (PPI)

Explanation:

The producer price index is an index that measures the average changes in price received by domestic producers for their products over a period of time. Producer price index measures price movement from the seller's point of view. The PPI measures inflation from the perspective of producers of products.