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BU204 - The consumer price index (CPI)

Question # 00614457
Subject: Economics
Due on: 11/07/2017
Posted On: 11/07/2017 12:07 PM
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The consumer price index (CPI) is used to calculate the rate of inflation, and hence it measures the cost of living in an economy.

  1. How do we use consumer price index (CPI) to measure the cost of living? What is the relationship between CPI and the rate of inflation?
  2. What is the importance of measuring price fluctuations? How does the change in average price help explain the difference between nominal and real interest rates?
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BU204 - The consumer price index (CPI)

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Posted On: 11/07/2017 12:07 PM
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