Econ-CPI Questions with correct answers

Econ-CPI What is the CPI? The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. How is the CPI used? - As a economic indicator - As a deflator of other economic series - As a means of adjusting dollars values Whose buying habits does the CPI reflect ? The CPI reflects spending patterns for each of two population groups: all urban consumers and urban wage earners and clerical workers. The all urban consumers group is based on the expenditures of almost all residents of urban or metropolitan areas, including professionals, the self-employed, the poor, the unemployed, and retired people, as well as urban wage earners and clerical workers. Not including in the CPI are the spending pattern of people living in rural metropolitan areas, farm families, people in the Armed Forces, and those in institutions, such as prisons and metal hospitals. Consumer inflation for all urban consumers is measured by two indexes, namely, the Consumer Price Index for All Urban Consumers (CPI-U) and the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) .