1. � CheckPoint: Calculation of the Consumer Price Index (CPI)   Due Date:  Day 6 (Individual forum)   The Consumer Price Index (CPI) is a measure of the overall cost of the goods and services bought by a typical consumer.  Each month, the Bureau of Labor Statistics follows five steps to calculate Consumer Price Index. Complete the following questions:   · �    List the five steps that the BLS follows to calculate the CPI.   · �    Explain the three problems associated with the calculation of the CPI.   · �    The fifth step of calculating the CPI computes the inflation rate.  The inflation rate is a very important measure of how well our economy is doing.  Answer the following questions:   o   Suppose the inflation rate is 4% (per year) and your income increases by 6% (per year).  Are you better or worse off?  Explain.   o   Suppose the inflation rate is 8% (per year) and your income increases by 6% (per year).  Are you better or worse off?  Explain.   · �    Format your paper according to APA standards. · �    Post your essay as a Microsoft© Word attachment.   Please note:  You will not use Appendix D to complete your checkpoint.

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