A Consumer Price Index (CPI) is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. It basically tells us the changes in prices over time (i.e. inflation). What does the following graph tell us. [Select all the apply] 12-month percentage change, Consumer Price Index, selected categories, June 2020 Apparel New vehicles Used cars and trucks Medical care commodities Alcoholic beverages Tobacco and smoking products | -2% 0% -8% -6% -4% Ilover over chart to view data. Source. U.S. Bureau of Labor Statistics. O Now may be a good time to buy clothing or a new/used car. Medical care is increasing in prices People are spending more on alcohol and tobacco/smoking products. We all just want to have a good time. 2% 4% 6%
A Consumer Price Index (CPI) is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. It basically tells us the changes in prices over time (i.e. inflation). What does the following graph tell us. [Select all the apply] 12-month percentage change, Consumer Price Index, selected categories, June 2020 Apparel New vehicles Used cars and trucks Medical care commodities Alcoholic beverages Tobacco and smoking products | -2% 0% -8% -6% -4% Ilover over chart to view data. Source. U.S. Bureau of Labor Statistics. O Now may be a good time to buy clothing or a new/used car. Medical care is increasing in prices People are spending more on alcohol and tobacco/smoking products. We all just want to have a good time. 2% 4% 6%
MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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![# Understanding the Consumer Price Index (CPI)
A Consumer Price Index (CPI) is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. It basically tells us the changes in prices over time (i.e., inflation).
## What does the following graph tell us?
**[Select all that apply]**
### **12-month percentage change, Consumer Price Index, selected categories, June 2020**
The graph displays the 12-month percentage change in the Consumer Price Index (CPI) for selected categories as of June 2020. The categories along with their respective percentage changes over the 12 months are:
- **Apparel**: Observes approximately a -7% change.
- **New vehicles**: Experiences a slight increase, suggesting a small positive change close to 0%.
- **Used cars and trucks**: Shows a decrease nearing -1%.
- **Medical care commodities**: Reports a positive change, approaching 1%.
- **Alcoholic beverages**: Has a small positive change, around 1%.
- **Tobacco and smoking products**: Records the highest increase, with an approximate 6% rise.
### **Possible Interpretations:**
- **Now may be a good time to buy clothing or a new/used car.**
- **Medical care is increasing in prices.**
- **People are spending more on alcohol and tobacco/smoking products.**
- **We all just want to have a good time.**
**Source**: U.S. Bureau of Labor Statistics
Hover over the chart to view specific data.
---
This information can be useful to understand how different categories of consumer goods have changed in price over a year, providing insights into inflation and cost-of-living adjustments that may be needed.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faddcfefe-79de-4bfb-b00e-9692daf48932%2F07c8ebd9-afcf-444d-9b08-6f9af51d526d%2Ftph3g5c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:# Understanding the Consumer Price Index (CPI)
A Consumer Price Index (CPI) is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. It basically tells us the changes in prices over time (i.e., inflation).
## What does the following graph tell us?
**[Select all that apply]**
### **12-month percentage change, Consumer Price Index, selected categories, June 2020**
The graph displays the 12-month percentage change in the Consumer Price Index (CPI) for selected categories as of June 2020. The categories along with their respective percentage changes over the 12 months are:
- **Apparel**: Observes approximately a -7% change.
- **New vehicles**: Experiences a slight increase, suggesting a small positive change close to 0%.
- **Used cars and trucks**: Shows a decrease nearing -1%.
- **Medical care commodities**: Reports a positive change, approaching 1%.
- **Alcoholic beverages**: Has a small positive change, around 1%.
- **Tobacco and smoking products**: Records the highest increase, with an approximate 6% rise.
### **Possible Interpretations:**
- **Now may be a good time to buy clothing or a new/used car.**
- **Medical care is increasing in prices.**
- **People are spending more on alcohol and tobacco/smoking products.**
- **We all just want to have a good time.**
**Source**: U.S. Bureau of Labor Statistics
Hover over the chart to view specific data.
---
This information can be useful to understand how different categories of consumer goods have changed in price over a year, providing insights into inflation and cost-of-living adjustments that may be needed.
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