How the Economy is Operating
United States Department of Labor shows the Consumer Price Index of All Urban Consumer in the United States. What is Consumer Price Index? Consumer price index was the weighted average of the prices of a specified set of goods or services purchased by the consumers. The CPI is can be used to monitor the change in the prices of goods and services in an area. CPI is also used for measuring the rate of inflation in an area. If the CPI shown in the graph was high it means that the inflation of the country is high giving high prices to goods and making the cost of living in the area high.
It also means that the economy was low. On the other hand if it was the CPI was low, we can say that the economy is on a good condition. The graph shows that the CPI of U. S from 1997 up to this present year was fluctuating. It has it highest peak in the year 2005 but also got its lowest peak at that year also. In a clear view we can say that the operation of the economy in U. S as of April 2005 was low
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The cost of living in the area was high reflecting the loss in economy of U. S in that time. In the same manner, the economy in U. S boosted in November 2005 as we can notice the inflation was low at that time. By observing the graph we can say that the operation of economy in U. S in the start of this year was not that bad. This year’s CPI was only the same as the start of 1997. Thus, the economy of U. S. in this year was not that bad compared to what happened in the economy of the country last Apr 2005.
Reference: August 23, 2006. “Consumer Price Index – All Urban Consumers”. June 7, 2007. U. S. Department of Labor-Bureau of Labor Statistics Website: http://www. bls. gov/cpi/home. htm