Free

The Consumer Price Index - Assignment Example

Add to wishlist

Cite this document

Summary

Download full paper File format: .doc, available for editing

GRAB THE BEST PAPER94.5% of users find it useful

Read Text Preview

Subject: Macro & Microeconomics
Type: Assignment
Level: High School
Pages: 1 (250 words)
Downloads: 2
Author: chelseyziemann

Extract of sample "The Consumer Price Index"

Assignment Assignment Where a is the number of apples, x is the price of an apple, b is the number of oranges and y is the price of an orange. 2 The consumer price index refers to the changes in the cost of products over a specific period. Using the results obtained above, the CPI can be given as Taking initial price to be 100% ($6.75) and considered as a baseline for CPI 3 This percentage represents the percentage change in prices that cause the CPI to rise to 140.74% 4 5 The quantity of oranges and apples purchased won’t remain the same.

The above huge percentage changes in prices over a short period can be attributed to inflation or deflation, and this case represents typical inflation. Also, the large changes in CPI denote inflation or deflation. The above percentage increase represents the how the cost of living is affected by changes in CPI. Thus, changes in the consumer price index are used to assess changes associated with the cost of living as well as economic growth.

Cite this document

APA
MLA
CHICAGO

(“The Consumer Price Index Assignment Example | Topics and Well Written Essays - 250 words”, n.d.)
The Consumer Price Index Assignment Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/macro-microeconomics/1700631-the-consumer-price-index

(The Consumer Price Index Assignment Example | Topics and Well Written Essays - 250 Words)
The Consumer Price Index Assignment Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/macro-microeconomics/1700631-the-consumer-price-index.

“The Consumer Price Index Assignment Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/macro-microeconomics/1700631-the-consumer-price-index.

Cited: 0 times

CHECK THESE SAMPLES OF The Consumer Price Index

The European Central Banks Targeted Inflation Rates

% increase was witnessed in The Consumer Price Index.... The main measure of inflation is The Consumer Price Index which provides an indication of the price level of consumer goods and services which are purchased by households, business firms, the government as well as the rest of the world (in case of an open economy).... The following graph helps to show The Consumer Price Index in Germany and the changes that the same has undergone over a decade....

5 Pages (1250 words) Assignment

Thesis for Graduating Paper

This paper seeks to evaluate The Consumer Price Index by discussing how it is calculated and its implications.... The Consumer Price Index, abbreviated as CPI, plays a key role in macroeconomics.... Thesis for graduating The Consumer Price Index, abbreviated as CPI, plays a key role in macroeconomics.... This paper seeks to evaluate The Consumer Price Index by discussing how it is calculated and its implications.... To calculate The Consumer Price Index, one needs to identify a particular sample of goods and services that are common to the market....

3 Pages (750 words) Essay

Inflation and the cpi index

The Laspeyres formula applies in calculating the inflation rate that is defined by The Consumer Price Index.... This paper looks at the overwhelming evidence supporting that current inflation due to economic and political pressures has adversely effected The Consumer Price Index The Consumer Price Index (CPI) is generally the measure of the average change in the prices paid by urban consumers for a market basket of consumer goods and services over time....

5 Pages (1250 words) Research Paper

The Consumer Price Index

The Consumer Price Index Name Institution The Consumer Price Index The Consumer Price Index is usually considered as the average measure of prices changes that is usually affected by urban consumers with a market of goods and services.... Relative Importance Table 1: individual expenditure Increment in the prices of food and beverages by five percent and medical care costs by ten percent with no changes in the prices of other commodities will still change the overall CPI within the price index by nearly 1....

2 Pages (500 words) Essay

Non Specific topics

It has also been suggested that per capita income is a superior measure of standards of living compared to the total national incomeQuestion 5: Why does The Consumer Price Index exaggerate the inflation rate?... In calculating the inflation rate, a number of reasons make The Consumer Price Index (CPI) exaggerate the inflation rate.... The index, originates from the Bureau of Labor Statistics (BLS).... Additionally, the index does not do enough adjustments for substitutions....

2 Pages (500 words) Essay

Hedonic Method in the Consumer Price Index

The research paper “Hedonic Method in The Consumer Price Index” looks at the Hedonic Pricing Method as a model that identifies factors in relation to the principle that prices are set depending on both the internal and external factors.... The purpose of The Consumer Price Index is measuring effects on consumer household by price changes.... Hedonic Method in the Consumer Price IndexCase StudyQuestion 1: What is the hedonic method and why is it sometimes used to track changes in The Consumer Price Index?...

1 Pages (250 words) Case Study

1-4 Stagnant wages

Boudreaux has clearly manipulated the indexes in favour of his skewed Response to the Post Economists have developed or created The Consumer Price Index (CPI) and The ProducerPrice Indexes (PPI) to measure inflation over the period.... His decision to use The Consumer Price Index (CPI) supports his manipulative nature as the index shows that workers wages have not been significantly adjusted to inflation in the last 30 years (Learn Liberty 1).... When The Producer price Indexes (PPI) is used to determine the same, the average hour wage for workers have risen significantly by 18% in the same period....

1 Pages (250 words) Book Report/Review

Inflation and Government Economic Policies

Such an increase in The Consumer Price Index has been due to increased buying by the consumer.... able 3It is clear that both The Consumer Price Index and the Producer Price Index can be used to predict inflation rate of a country.... he consumer price index is a measure of variations in the cost of a basket of commodities bought by households in a given period.... consumer price index: Bureau of Labor Statistics.... Table 1On the other hand, Producer price index (P....

2 Pages (500 words) Essay