ECO WK 7 CPI - These answers are directly from...

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These answers are directly from www.bls.gov/cpi How is the CPI used? “The CPI affects nearly all Americans because of the many ways it is used. Following are major uses: As an economic indicator. As a deflator of other economic series. As a means of adjusting dollar values. “ How is the CPI market basket determined? “The CPI market basket is developed from detailed expenditure information provided by families and individuals on what they actually bought. For the current CPI, this information was collected from the Consumer Expenditure Surveys for 2007 and 2008. In each of those years, about 7,000 families from around the country provided information each quarter on their spending habits in the interview survey. To collect information on frequently purchased items, such as food and personal care products, another 7,000 families in each of these years kept diaries listing everything they bought during a 2-week period.
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This note was uploaded on 05/10/2011 for the course ECO 212 taught by Professor Emil during the Spring '11 term at Aberystwyth University.

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ECO WK 7 CPI - These answers are directly from...

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