Nt1310 Unit 2 Case Study
Arnold C. Collins, Jr
Columbia Southern University
Unit II Case Study
Question 1
I don’t believe that the State of the USA designed to replace GDP as the primary measure of economic performance. I simply believe that the United States would like to see more indicators as to how our economy is doing and what we can do to help boost the economy. While taking in other information on what’s going on with the country. First standing us as a nonprofit agency I 2007 and would later gather more notice in 2010 with a health care bill that required Congress to help finance and raw data from education energy, economy, health care and the environment to name a few. The group is not meant to interpret the data, just too simple disseminate it to everyone in a nonpartisan manner. With The State of the USA not being designed to replace the GDP as the …show more content…
In order to see how and why this is so, let us first look at what CPI is and how it is derived.
The CPI is meant to be a measure of the cost of living in the United States at any given time. It is used to track inflation. The CPI is derived from the cost of a given “market basket” of products and services that people typically need to buy. In other words, a set of goods and services is made up and the prices of those goods and services are determined. This is used as a baseline. As the prices of those goods and services changes, so does the CPI.
But there are problems with using the CPI as a measure of the cost of living. The problem relevant to this question is the fact that the characteristics of the goods and services in the market basket might change. When the characteristics change, the price can change as well. This price change might show up in the CPI even though it is really caused by a change in the product, not by
Columbia Southern University
Unit II Case Study
Question 1
I don’t believe that the State of the USA designed to replace GDP as the primary measure of economic performance. I simply believe that the United States would like to see more indicators as to how our economy is doing and what we can do to help boost the economy. While taking in other information on what’s going on with the country. First standing us as a nonprofit agency I 2007 and would later gather more notice in 2010 with a health care bill that required Congress to help finance and raw data from education energy, economy, health care and the environment to name a few. The group is not meant to interpret the data, just too simple disseminate it to everyone in a nonpartisan manner. With The State of the USA not being designed to replace the GDP as the …show more content…
In order to see how and why this is so, let us first look at what CPI is and how it is derived.
The CPI is meant to be a measure of the cost of living in the United States at any given time. It is used to track inflation. The CPI is derived from the cost of a given “market basket” of products and services that people typically need to buy. In other words, a set of goods and services is made up and the prices of those goods and services are determined. This is used as a baseline. As the prices of those goods and services changes, so does the CPI.
But there are problems with using the CPI as a measure of the cost of living. The problem relevant to this question is the fact that the characteristics of the goods and services in the market basket might change. When the characteristics change, the price can change as well. This price change might show up in the CPI even though it is really caused by a change in the product, not by