Economics Homework: Consumer Price Index (CPI) Analysis

This assignment analyzes the Consumer Price Index (CPI), focusing on inflation and price changes. The student calculates the percentage change in CPI based on food, clothing, and medical care prices, determining the impact of other items in the CPI basket. The analysis delves into the reasons behind price changes, including increased consumption, decreased supply, and production costs, linking these factors to economic concepts like income and monetary policy. The assignment also explores the relationship between the CPI value and changes in the prices of items within the basket, concluding that changes in the price of other items can influence the overall CPI, potentially decreasing it if the price of other items decreases. The student references various sources like Khan Academy and the Federal Reserve to support the analysis.