Calculation of the Consumer Price Index (CPI)
The Bureau of Labor Statistics follows five steps to calculate Consumer Price Index.
· Resource: Ch. 24 (pp. 520-522) of Principles of Economics and Appendix D
· Review Appendix D. Using the chart provided, identify three strengths and threeweaknesses of the calculation.
· Post a 200- to 300-word response that answers the following questions once your chartis complete:
· What are the characteristics of the items listed as strengths?
· What are the characteristics of the items listed as weaknesses?
· If the CPI is imperfect, why do we use it?
