Asked by lauren delancellotti on Jul 25, 2024
Verified
The Consumer Price Index (CPI)excludes these two variables because energy and food prices fluctuate excessively from month to month,
Consumer Price Index (CPI)
Measurement of the monthly average change in prices of goods and services.
Energy And Food Prices
The costs associated with obtaining and consuming energy resources and food commodities, which can significantly impact economic conditions and living standards.
- Acquire an understanding of the different phases within the business cycle, like recession and recovery, and their impact on workforce employment and behavioral patterns of consumers.
Verified Answer
ER
Eddie Ray RoncoJul 30, 2024
Final Answer :
False
Explanation :
The Consumer Price Index (CPI) includes energy and food prices; it does not exclude them. The CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, including food and energy. However, there is a version of the CPI called the Core CPI, which excludes food and energy prices due to their volatility.
Learning Objectives
- Acquire an understanding of the different phases within the business cycle, like recession and recovery, and their impact on workforce employment and behavioral patterns of consumers.