Web Application Chapter 9 page 364

The U.S. government attempts to maintain steady economic growth with low unemployment and price stability by instituting specific monetary and fiscal policies. The U.S. government changes government spending and taxes based upon its fiscal policy.

The Federal Reserve is the authority behind the U.S. monetary policy that influences changes in interest rates and the nation's money supply. Two monthly economic indicators used to determine the state of the economy are Payroll Employment and Consumer Price Index (CPI). Bank of America makes it easier to stay informed by studying the latest economic and financial news on a daily basis.

Visit http://corp.bankofamerica.com/research/e_economic_analysis_research.html, and select Consumer Price Index. Use the information you find to answer the following questions.

1. According to the analysis you find at this Web site, what were the major factors affecting the CPI for the latest period? Be sure to include the date in your answer.

2. At what percent does the core CPI run?

Include the date of the information used in your answer.

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