Principles of Macroeconomics / Unit 6 MAC 0510 short lesson, about 20 seconds
Other Price Indices
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The idea
Other indices price other things: producer prices for inputs, an employment cost index for wages, and the GDP deflator for everything counted in output.
In practice
The deflator is not a fixed basket, so its contents change as output changes.
Where people slip
The central bank watches a fourth, the personal consumption expenditures index, and states its target in those terms.
Your place on the trail
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