Measuring Inflation & Consumer Price Index
In this exercise, students will explore the concept of inflation by analyzing the Consumer Price Index (CPI), learning how to calculate changes in prices over time, and understanding the implications of inflation on the economy and everyday life. Engage with real-world data to discover how consumer purchasing power shifts and what it means for individuals and businesses alike!
Questions
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MultiChoice
What is the Consumer Price Index (CPI)?
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MultiChoice
What is the market basket in CPI calculations?
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MultiChoice
Who calculates the Consumer Price Index in most nations?
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MultiChoice
What does a steadily rising CPI indicate?
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MultiChoice
What is the inflation rate?
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MultiChoice
Which items are included in a typical CPI market basket?
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MultiChoice
Why do economists track CPI monthly?
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MultiChoice
What is the base year in CPI calculations?
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MultiChoice
What is core inflation?
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MultiChoice
If CPI goes from 100 to 105 in one year, what is the annual inflation rate?
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MultiChoice
How do governments use CPI data?
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MultiChoice
What is a limitation of using CPI to measure personal inflation?