1
Q
CPI consumer price index
A
monthly reports and geographically → a statistic that measures typical purchases of goods and services by a typical consumer
2
Q
typical
A
not weird or out of the ordinary
3
Q
basket typical goods and services
A
houses, transportation, cars, gas, health care, clothing, food, education
4
Q
what does CPI calculate
A
used to calculate inflation -> its value will affect interest rates
5
Q
inflation calculation
A
CPI of newest-CPI of old/ CPI of old x 100
6
Q
how to calculate the value of a year
A
price x quantity of base year
7
Q
how to calculate CPI
A
value of year/value of base year x 100
8
Q
what is included in CPI
A
ONLY TYPICAL GOODS AND SERVICES!!
ECON EXAM 1
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