CPI Flashcards

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

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2
Q

typical

A

not weird or out of the ordinary

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3
Q

basket typical goods and services

A

houses, transportation, cars, gas, health care, clothing, food, education

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4
Q

what does CPI calculate

A

used to calculate inflation -> its value will affect interest rates

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5
Q

inflation calculation

A

CPI of newest-CPI of old/ CPI of old x 100

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6
Q

how to calculate the value of a year

A

price x quantity of base year

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7
Q

how to calculate CPI

A

value of year/value of base year x 100

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8
Q

what is included in CPI

A

ONLY TYPICAL GOODS AND SERVICES!!

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