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.