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Macroeconomic Changes In The Economy Research Proposal

2.6 Producer price index

The Producer Price Index, or the PPI, stands for "family of indexes that measures the average change in selling prices received by domestic producers of goods and services over time. PPIs measure price change from the perspective of the seller" (Investopedia, 2009). The evolution of the PPI has also been a fluctuating one, with a major ascendant trend:

Source: United States Department of Labor, 2009

Despite the past increase in producer price index, the future seems to hold decreases in its value:

The downward trend forecasted for the following 18 months means that the automobile producers in the United States receive less money for the sale of their products. Increases in this value lead to growths in the revenues of the vehicle producers, but a most compelling conclusion can only be drawn through correlation with the inflation rate throughout the studied period. For instance, if the inflation and the PPI grow at similar rates, the automobile manufacturers have not gained any real advantage.

References:

Ford Motor Company, Hoovers, 2009, http://hoovers.com/ford-motor/--ID__10597,FRIC__ -- /free-co-competition.xhtml...

Bureau of Economic Analysis, 2009, http://www.bea.gov/briefrm/gdp.htm last accessed on May 8, 2009
Interest Rate Trends, Mortgage-X, 2009, http://mortgage-x.com/trends.htm last accessed on May 8, 2009

Producer Price Indexes, United States Department of Labor, http://data.bls.gov/PDQ/servlet/SurveyOutputServlet-request_action=wh&graph_name=WP_ppibrief last accessed on May 8, 2009

The U.S. Unemployment Rate January 1948 to March 2009, Misery Index, 2008, http://www.miseryindex.us/urbymonth.asp last accessed on May 8, 2009

United States Inflation Rate, Trading Economics, 2009, http://www.tradingeconomics.com/Economics/Inflation-CPI.aspx?symbol=USD last accessed on May 8, 2009

Crystal Bull, 2009, http://www.crystalbull.com/stock_market_timing/Personal_Income_chart last accessed on May 8, 2009

Investopedia, 2009, http://www.investopedia.com last accessed on May 8, 2009

Investor Words, 2009, http://www.investorwords.com last accessed on May 8, 2009

The Financial Forecast Center, 2009, http://forecasts.org last accessed on May 8, 2009

Sources used in this document:
References:

Ford Motor Company, Hoovers, 2009, http://hoovers.com/ford-motor/--ID__10597,FRIC__ -- /free-co-competition.xhtml last accessed on May 8, 2009

Gross Domestic Product, U.S. Bureau of Economic Analysis, 2009, http://www.bea.gov/briefrm/gdp.htm last accessed on May 8, 2009

Interest Rate Trends, Mortgage-X, 2009, http://mortgage-x.com/trends.htm last accessed on May 8, 2009

Producer Price Indexes, United States Department of Labor, http://data.bls.gov/PDQ/servlet/SurveyOutputServlet-request_action=wh&graph_name=WP_ppibrief last accessed on May 8, 2009
The U.S. Unemployment Rate January 1948 to March 2009, Misery Index, 2008, http://www.miseryindex.us/urbymonth.asp last accessed on May 8, 2009
United States Inflation Rate, Trading Economics, 2009, http://www.tradingeconomics.com/Economics/Inflation-CPI.aspx?symbol=USD last accessed on May 8, 2009
Crystal Bull, 2009, http://www.crystalbull.com/stock_market_timing/Personal_Income_chart last accessed on May 8, 2009
Investopedia, 2009, http://www.investopedia.com last accessed on May 8, 2009
Investor Words, 2009, http://www.investorwords.com last accessed on May 8, 2009
The Financial Forecast Center, 2009, http://forecasts.org last accessed on May 8, 2009
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