« previous next »

Author Question: What are the three stages of constructing the CPI? What will be an ideal ... (Read 61 times)

nevelica

  • Hero Member
  • *****
  • Posts: 563
on: Jun 29, 2018
What are the three stages of constructing the CPI?
 
  What will be an ideal response?

Question 2

Retirement savings accounts, such as IRAs, help increase economic growth because
 
  A) they encourage international trade.
  B) government invests them.
  C) they keep the interest rates high.
  D) people have an incentive to work harder and longer hours to save for the future.
  E) savings finances investment.


wuly

  • Sr. Member
  • ****
  • Posts: 327
Reply #1 on: Jun 29, 2018
Answer to Question 1

The first stage is to select the CPI market basket. The market basket is determined by surveying the spending habits of consumers by conducting a Consumer Expenditure Survey. The second stage is to check the prices of about 80,000 goods and services in 30 metropolitan areas. This checking is done on a monthly basis. The third stage is to calculate the CPI itself. To calculate the CPI, a period of time is selected as the base reference period and the cost of the CPI market basket using the prices from that period is computed. Then the CPI in any other month equals 100 times the quotient of the cost of the market basket using current-period prices divided by the cost of the market basket in the reference base period.

Answer to Question 2

E


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Dispersing and sedentary stages of organisms. Dispersing and sedentary stages of organisms.
The stages of labor and delivery. (A) During the dilation stage the cervix thins and dilates to 10 c The stages of labor and delivery. (A) During the dilation stage the cervix thins and dilates to 10 c
Stages of Liver Damage 2 Stages of Liver Damage 2
Freud’s Psychosexual Stages Freud’s Psychosexual Stages
Stages of Hypertension Cont. Stages of Hypertension Cont.
Nursing Interventions and Prochaska's Stages of Change Nursing Interventions and Prochaska's Stages of Change
Video: Hormonal regulation of pregnancy - week 1

For a complete list of videos, visit our video library