COPYRIGHTED MATERIAL
EXPLORING 21st CENTURY SKILLS AND ISSUES
7. List the consumer goods and services the CPI covers in its “basket.” _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 8. How does the Department of Labor define inflation? _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 9. The CPI used as an economic indicator of what, specifically? (Click on: As an economic indicator; More.) _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 10. What does the Consumer Confidence Index (CCI) measure? Why does it matter how the consumer feels? _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ BONUS: What is inflation and why are signs of inflation worrisome? (Investopedia “What is Inflation?” www.youtube.com/watch?v=Vi3Q1ypNw3M) A process of continuously rising prices or equivalent, of a continuously falling value of money. The CPI is the most widely used measure of inflation and is sometimes viewed as an indicator of the effectiveness of government economic policy. The CCI measures consumer sentiment about job security, savings, the economy and their overall financial outlook . How the consumer feels is important because it indicates whether and at what level they are consuming products and services. Consumer sentiment impacts business, government, and economic policies. If consumers are not confident about things like jobs, savings or other matters affecting their future , they will not spend money. That can cause the economy to stagnate and the GDP to fall . food and beverages, housing, apparel , transportation , medical care , recreation , education and communication other goods and services. PRODUCT PREVIEW
______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ ______________________________________________________________ Inflation is a sustianed increase in the prices of goods or services which erodes the value of money, reducing purchasing power.
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Lesson 1 | Look Out, You’re Surrounded!
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