Answered

Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

Which of the following can give an early warning of future increases in the price level?

a. GDP deflator

b. Producer price index

c. Consumer price index

d. All of the above

Sagot :

B. Producer price index

Producer price index is one of the alarms that can provide early warning about inflation in the future. By knowing the price index, each company can predict price movements over the next several periods.

Inflation is a process of increasing prices in general and continuously related to market mechanisms which are influenced by many factors, such as increased public consumption, excess liquidity in the market which triggers consumption or even speculation, to the uneven distribution of goods. Inflation is an indicator to see the level of change, and inflation is considered to occur when the price increase process is continuous and influences one another. There are many ways to measure the inflation rate, but the two most frequently used are the Consumer Price Index (CPI) and the GDP Deflator.

You can learn more about Inflation here brainly.com/question/29308595

#SPJ4

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. We appreciate your time. Please come back anytime for the latest information and answers to your questions. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.