The cost of a representative basket of household consumption goods is given by the CPI (Consumer Prices Index); the equivalent for firms is the PPI (Producer Price Index); and the broadest measure of prices is the GDP deflator which is defined as the ratio of Nominal GDP to Real GDP. Firms involved with foreign markets either in goods, services, or capital, pay attention to the relative value of the U.S. Dollar, that is, the exchange rate. Discuss?

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The Relationship Between CPI PPI GDP Deflator and Exchange Rates A Discussion Youre right these economic indicators are all deeply interconnected and ... View the full answer