Question
using the following websites: https://www.khanacademy.org/economics-finance-domain/core-finance/inflation-tutorial/inflation-basics-tutorial/v/cpi-index https://www.federalreserve.gov/faqs/economy_14419.htm https://www.cato.org/publications/policy-analysis/inflation-federal-reserve-consequences-political-money-supply https://www.federalreserve.gov/faqs/economy_14400.htm https://www.frbatlanta.org/about/fed-explained/2012/inflation.aspx https://www.frbatlanta.org/research/inflationproject/tutorial.cfm According to the BLS, the CPI rose 3.8% in August of this year compared to
using the following websites:
https://www.khanacademy.org/economics-finance-domain/core-finance/inflation-tutorial/inflation-basics-tutorial/v/cpi-index
https://www.federalreserve.gov/faqs/economy_14419.htm
https://www.cato.org/publications/policy-analysis/inflation-federal-reserve-consequences-political-money-supply
https://www.federalreserve.gov/faqs/economy_14400.htm
https://www.frbatlanta.org/about/fed-explained/2012/inflation.aspx
https://www.frbatlanta.org/research/inflationproject/tutorial.cfm
According to the BLS, the CPI rose 3.8% in August of this year compared to a year earlier. Food prices rose 4.6% and clothing prices were up 4.2%, while new car prices rose 3.8%, and medical care was up 3.2%.
- What percentage change in the CPI up until August is accounted for by the changes in the prices of food, clothing, and medical care?
- Given the changes in food, clothing, and medical care, by what percentage did the prices of the other items in the CPI basket change?
- Why did the prices of the other items change?
- What is the probable impact of the change of other items in the CPI basket?
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