BADM Ch.17

Producer Price Index (PPI)

A monthly price index designed to measure changes in prices of goods sold in primary markets (i.e., first purchase of a commodity in nonretail markets)

Consumer Price Index (CPI)

A monthly price index that uses the price changes in a market basket of consumer goods and services to measure the changes in consumer prices over time.

Price Relative

A price index for a given item that is computed by dividing a current unit price by a base-period unit price and multiplying the result by 100.

Index of Industrial Production

A quantity index designed to measure changes in the physical volume or production levels of industrial goods over time.

Laspeyres index

A weighted aggregate price index in which the weight for each item is its base-period quantity.

Paasche index

A weighted aggregate price index in which the weight for each item is its current-period quantity.

Aggregate price index

A composite price index based on the prices of a group of items.

Weighted aggregate price index

A composite price index in which the prices of the items in the composite are weighted by their relative importance.

Dow Jones averages

Aggregate price indexes designed to show price trends and movements associated with common stocks.

Quantity index

An index designed to measure changes in quantities over time.