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Inaccuracies Of The Consumer Price Index(CPI)
Beginning of essay
Inaccuracies of the Consumer Price Index(CPI)
The Consumer Price Index is a measure of the prices of a fixed market
basket of some 300 consumer goods and services purchased by a "typical" urban
consumer. The 1982-1984 period serves as the base period so analysts can compare
other year's changes wit ....
Middle of essay
....y are worried about getting re-elected. Even if
the President does call for a revision of the CPI, Congress would defeat it to
keep their positions.
Another consequence of the overstated CPI involves the adjustment of tax
brackets. Their intent of indexing is to prevent inflation to cause people to be
placed into a higher tax bracket. For example, if your income increases by 10%,
that may put you in a higher level tax bracket, but if product prices have also
increased by 10%, your real income h.... |
| Number of words: 452 |
Approximate pages: 2 |
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