cpi affects pretty much every american W r i t i n g
Post a total of 3 substantive responses
Respond to the following in a minimum of 175 words:
- Describe the formula(s) used to determine the unemployment rate.
- Describe how inflation is measured using the Consumer Price Index (CPI).
Post 2 replies to classmates or your faculty member. Be constructive and professional.
The formula for calculating the unemployment rate is the number of unemployed people divided by the labor force. This determines the unemployment rate. Labor force is the total sum of unemployed and employed people. When you divide the amount of non-working individuals by the labor force, you will reach the unemployment rate for that time period. The CPI otherwise known as the consumer price index is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services. The CPI Market basket is developed from information being pulled together that has been provided by families and individuals on what they have purchased. The CPI affects pretty much every American because of the multiple ways that it is utilized. The CPI is utilized as an economic indicator and mainly used to measure inflation. It can also be viewed as an indicator of the effectiveness of the government economic
Policy. The consumer price index can also be used as a deflator of the value of the consumers dollar to find its
Purchasing power. The purchasing power of the dollar measures the change in the value to the consumer of goods and services that the money will buy at different dates.
The formula that is utilized to determine the unemployment rate is, number of unemployed workers divided by the available civilian work force at the current time the calculation is being determined. The calculation is often a percentage rate when the two numerical values are being divided. The calculation of the unemployment rate at that time does not factor in the citizens that have actively stopped looking for employment, which helps identify a more accurate percentage of citizens who are currently employed or consistently looking for employment.
Inflation happens when there is an increase in the level of prices of the goods or services that a household is purchasing. With this increase there are a few different tools that can be utilized to calculate the inflation rate. Inflation is measured with the utilization of the Consumer Price Index (CPI), when inflation is being calculated it measures the percentage of change in the price of the goods or services that are being consumed by households. CPI is the current way to measure inflation, but it tends to also be a controversial way at measuring inflation with different economists and the different opinions.