Determine the problems there with consumer price index, Macroeconomics

Assignment Help:

Determine the Problems evolved with Consumer Price Index

To illustrate problems involved in calculating CPI we consider MP3 players. If you measure average price of MP3 players at two points in time, let's say one year apart, you may find that average price hasn't changed.

Though, this isn't whole story as products on the market would have changed. Essentially, the products at later measurement are more advanced than products at the first measurement. If you were to compare prices of MP3 players with same performance, you will probably find that prices have fallen. Without adjusting for changes in quality and performance, you will generally overestimate the rise in price index.

 


Related Discussions:- Determine the problems there with consumer price index

Simple regression analysis uncover the ceteris paribus, Let kids denote the...

Let kids denote the number of children ever born to a woman, and let educ denote years of education for the woman. A simple model relating fertility to years of education is kids =

What is fixed cost and variable cost, What is fixed cost and variable cost?...

What is fixed cost and variable cost? By the Production Function to Cost Curves: A fixed cost is a cost which does not depend onto the quantity of output generated. This i

Dynamic Multiplier, Discuss the concept of dynamic multiplier.

Discuss the concept of dynamic multiplier.

Macroeconomics policy, explanations to the short-run fluctuation and pilicy...

explanations to the short-run fluctuation and pilicy prescriptions of the schools macroeconomics thought

Price elasticity, Price 10,9,8,7,6,5,4,3,2,1 QD 0,1,2,3,4,5,6,7,8,9,10 TR? ...

Price 10,9,8,7,6,5,4,3,2,1 QD 0,1,2,3,4,5,6,7,8,9,10 TR? Ed?.

Why marketers are interested in discretionary income, Because discretionary...

Because discretionary Income = the money people have left over once they have paid for all of their basic needs (Food, Clothing, Shelter). You could also call it Disposable Inc

What is average cost in the producing output, What is average cost in the p...

What is average cost in the producing output? Average total cost , frequently considered as to simply average cost, is sum of total cost divided through quantity of output gen

Keynesian theory, what is static and dynamic multiplier in keynesian theory...

what is static and dynamic multiplier in keynesian theory?

Define ndp, The following is the information from the national income accou...

The following is the information from the national income accounts for a hypothetical country: GDP

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd