True or False...The consumer price index is a measure of real income?

Question

If false, please correct

Answer 1

False: the CPI is (at least supposedly) a measure of the inflation rate. It has been at or about 3% since it has been calculated.

The "supposedly" is to point out that many economists believe that the CPI is a flawed measure of the actual inflation rate, as it overstates the actual amount of inflation for most goods. The GDP deflator has been suggested as an alternative, but it tends to understate inflation, so a better alternative would likely be a retooled CPI.

Answer 2

False -- it measures the rise and fall of relative costs -- not income

Answer 3

"A" shopper value index is a itemizing of shopper expenses by way of the years. "The" shopper value Index leaves-out quite a few key expenses and subsequently paints a rosier image than fact warrants. As for being "financial masterminds," Republicans in basic terms join the loopy (in accordance to Democrats) concept that repeating previous strikes is in all threat to yield outcomes comparable to those you purchased in the previous. subsequently our "economics recommendations are no longer something greater advantageous than acceptance of history. in assessment, best Democrat coverage MAKERS particularly declare that repeating previous strikes is rather much absolute to yield a thoroughly opposite result from what you purchased another time.