Macroeconomics is the subject analyzing the economic factors that effect nations and the relationship with other nation. In this article, we will discuss the consumer price index(CPI), inflation and unemployment that effect the economy of a nation.
1. Consumer price index (CPI)
The price level is impacted by a broad range of prices in the economy and is measured by a price index and changes in price levels are measured by changes in a price index over a period of time. The Consumer Price Index, or CPI measures the price of a basket of consumer good overtime a period of time. This basket of goods refers to those goods and services typically consumed by a nation family for necessities of life, such as food, shelter and clothing, consumer electronic and house hold items.