Internet Exercise #12 >>

>> TITLE A More In-depth Look at the CPI >> SUMMARY And URL The United States Bureau of Labor Statistics (BLS) collects a wide range of economic data. One of their most important tasks is to track prices and consumer spending. The Consumer Price Index (CPI) is perhaps the most well known summary of price data available. Take a few minutes and peruse the BLS web site and view the broad array of data services this agency provides. Then focus in on the Consumer Price Index. http://www.bls.gov/ Click on Consumer Price Index and then go the “Frequently Asked Questions” button and answer the following series of questions about the CPI. >> questions with answers What is the Consumer Price Index or CPI? Do individuals experience the same rate of inflation? What is the difference between the CPI-U and the CPI-W? What goods and services are counted in the CPI? (optional) >> Summary As you can see from this web site, the way that inflation is measured is very precise. Since price level stability is an economic goal, the government needs an accurate assessment tool. The Consumer Price Index is that tool and provides the Federal Reserve and lawmakers with a measure needed to make monetary and fiscal policy decisions. © 2004 Prentice-Hall, Inc. | A Pearson Education Company Legal Notice | Privacy Policy