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MArishka [77]
3 years ago
10

Before you answer your grandmother's questions, you first need to explain how the BLS (Bureau of Labor Statistics) calculates th

e CPI. "Well, Grandma, there are four basic steps". Rank the following steps in order, from the first step to the last. A. Come up with a basket of goods bought by a typical consumer.
B. Convert the cost of a basket to an index number.
C. Calculate how much the basket costs in each period.
D. Find out the prices of the different goods
Social Studies
1 answer:
AVprozaik [17]3 years ago
8 0

Answer:

A-Come up with a basket of goods bought by a typical consumer.

D-Find out the prices of the different goods.

C-Calculate how much the basket costs in each period.

B-Convert the cost of a basket to an index number.

Explanation: A Consumer Price Index is basically used to measure changes in the price level of a weighted average market basket of consumer goods and services purchased by households. It is used to measure inflation. Four steps are required when measuring the Consumer price index of an household. They include ;

Coming up with a list of items or good basket purchased by a consumer. Once that has been done, the prices of the separate items and cost of items at different times or period then convert.

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