Which of the following statements best defines the producer price index (PPI)?
A. It measures the change over time in the prices that businesses pay each other for goods and services.
B. It refers to the quantity of products that consumers are willing to buy at different market prices.
C. It measures the change in weighted-average price over time in a consumer market basket of goods.
D. It refers to a standard equation that is used to determine the resources needed to produce a certain quantity of goods.
Answer: A
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