Macro Unit 2.5- CPI Practice AP Macroeconomics

The video tutorial introduces the concept of the Consumer Price Index (CPI) within macroeconomics, explaining how it measures inflation through a Market Basket of goods. It provides a detailed guide on calculating CPI using different base years, with examples and practice problems to reinforce understanding.

Describe the process of calculating CPI for different base years.

How do price changes between years affect the CPI?

What does it mean if the CPI is less than 100?