CPI

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CPI

example

pear

apple

twice the weight

if we spend twice as much on apples as on pears

Price Index

contains

all the goods and service

house rent

transportation

haircuts

medicine

gas

food

consumed in a county

determined

by

the value of what is consumed

in a country

weight in CPI basket

the larger the value in total consumption

the larger the weight

CPI basket

in the basket

Consumer Price Index