Unformatted text preview: Unit 3: CPI Webquest Please complete the following webquest. Once you have finished… please submit to the U
nit 3: CPI
Part #1: Answer the following questions using this Web site:
1. List five goods and services that consumer price index (CPI) covers.
1. FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks)
2. HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture)
3. APPAREL (men's shirts and sweaters, women's dresses, jewelry)
4. TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance)
5. MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and eye
care, hospital services)
2. List two things that are not included in the consumer price index (CPI).
1. stocks and bonds
2. Real Estate , Life Insurance
Part #2: Answer the following question using this Web site.
3. In your own words explain the quantity theory of money.
This is a theory about the demand for money in an economy.
Answer the following question using this Web site.
4. In your own words explain the cost-push theory of inflation.
Cost-push inflation happens when costs increase independently of aggregate demand. Answer the following question using this Web site.
5. In your own words explain the demand-pull theory of inflation.
Demand-pull inflation happens where there is ‘too much money chasing too few goods.’ Excessive
growth in demand literally pulls prices up. ...
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