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For more course tutorials visit www.uoptutorial.com 1. CheckPoint: Calculation of the Consumer Price Index (CPI) Due Date: Day 6 (Individual forum) The Consumer Price Index (CPI) is a measure of the overall cost of the goods and services bought by a typical consumer. Each month, the Bureau of Labor Statistics follows five steps to calculate Consumer Price Index. Complete the following questions: • List the five steps that the BLS follows to calculate the CPI. • Explain the three problems associated with the calculation of the CPI. • The fifth step of calculating the CPI computes the inflation rate. The inflation rate is a very important measure of how well our economy is doing. Answer the following questions: o Suppose the inflation rate is 4% (per year) and your income increases by 6% (per year). Are you better or worse off? Explain. o Suppose the inflation rate is 8% (per year) and your income increases by 6% (per year). Are you better or worse off? Explain. • Format your paper according to APA standards. • Post your essay as a Microsoft© Word attachment. 1. Please note: You will not use Appendix D to complete your checkpoint.
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