About This Chapter
Inflation & Income Policies - Chapter Summary
Whether you are looking for an introduction to inflation and income policies or want to strengthen your existing knowledge, this chapter can help. Our top instructors have created bite-sized lessons that provide in-depth analyses of income policies, the inflation rate and the circular flow of income. Review these lessons anytime using any computer or mobile device with Internet access. Test your comprehension of the concepts they cover by taking the multiple-choice quizzes and a chapter exam. Our experts can answer any questions you have about lesson topics you don't fully understand. Once you've completed this chapter, you will be able to:
- Define and describe the circular flow of income
- Share the definition and utilize the formula for the inflation rate
- Adjust wages for the inflation rate
- List current issues related to income policy
1. The Circular Flow of Income: Definition & Model
In this lesson, we will look how the circular flow of income works. We will look at key terms, the roles of households and firms, and some exceptions to the model in terms of leakages and injections. A summary and quiz will conclude the lesson.
2. What Is Inflation Rate? - Definition & Formula
Have you ever heard about inflation on the news? Ever wonder how inflation is calculated? In this lesson, you'll learn what the inflation rate is and how to calculate it. You'll also have a chance to take a short quiz.
3. Adjusting Wages for the Inflation Rate
Have you ever heard your parents complain that a dollar doesn't go as far as it used to? In this practical lesson, learn how to calculate the real wage by adjusting the nominal wage to account for changes in the price level within the economy.
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Other chapters within the TECEP Financial Institutions & Markets: Practice & Test Prep course
- Financial Markets & Financial Instruments
- Interest Rates Overview
- Financial Market Analysis & Trading
- Banks & Other Financial Intermediaries
- The Flow of Funds in Financial Intermediaries
- Regulation of Financial Institutions
- Introduction to International Finance
- Introduction to the Mortgage Market
- Futures & Options
- Branch Banking & Deposit Insurance
- Money & Interest-Rate Relationships
- TECEP Financial Institutions & Markets Flashcards