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Unformatted text preview: is calculated every quarter and the calculations change. The Consumer Price Index (CPI) is an averaged fixed basket of goods and services regardless of where they are produced. The two are not identical but rather alternative ways to measure inflation. 4. Explain how higher savings leads to a higher standard of living. The standard of living in an economy can be measured in large part by its productivity; the higher the productivity the higher the standard of living. Businesses save capital much like individuals save money. The greater a nations savings rate the greater the pool of capital a nation has for investment to produce more and better school....
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This note was uploaded on 03/25/2012 for the course ECO 101 taught by Professor Lindsey during the Spring '12 term at Post.
- Spring '12