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  • 1. What is the CPI? What does it measure?
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  • 2. Why is it important to measure the economy? List at least three ways in which the CPI might affect your life.
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  • 3. What is the relationship between the CPI and inflation?
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  • 4. What is the difference between the CPI-U and the CPI-W?
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  • 5. Why do you think there are different indexes for the CPI-U and the CPI-W?
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  • 6. Give at least three reasons why the reported CPI might be different from your personal experience with prices.
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  • 7. List at least three limitations of the CPI.
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  • 8. List three factors that might cause the CPI to change.
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  • 9. What is the significance of the change in the core CPI rate?
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