AB 204 Week 5 Discussion 2 | Assignment Help | Kapln University

AB 204 Week 5 Discussion 2 | Assignment Help | Kapln University 

Unit 5 Discussion Topic 2

 

                                                                                                                  

The consumer price index (CPI) is used to calculate the rate of inflation, and hence it measures the cost of living in an economy.

a.    How do we use the consumer price index (CPI) to measure the cost of living? What is the relationship between CPI and the rate of inflation?

b.    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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