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Ch 71: Inflation Measurement & Adjustment - ORELA Middle Grades Social Science

About This Chapter

Let us help you prepare for the ORELA Middle Grade Social Science exam with this chapter explaining inflation measurement and adjustment. Use our video lessons and self-assessment quizzes to prepare for the questions you'll see on the exam.

Inflation Measurement and Adjustment - Chapter Summary

The lessons in this chapter describe inflation and its related concepts. The consumer price index, cost of living, and the GDP deflator are discussed, as well as wage adjustment and gross domestic product. GDP calculation, types of inflation and their various causes and effects are also explained. By the end of this chapter, you should be able to:

  • Define each type of inflation
  • Describe the effects of inflation on supply and demand
  • Understand the consumer price index
  • Calculate gross domestic product
  • Measure the cost of living

Our knowledgeable instructors will walk you through these topics in preparation for the ORELA Middle Grades Social Science exam. Video lessons and corresponding quizzes will assist you in conceptualizing this information and expose you to the types of questions you'll see on the actual exam.

Inflation Measurement and Adjustment Chapter Objectives

The ORELA Middle Grades Social Science exam is required for teacher licensing in the state of Oregon. The Inflation Measurement and Adjustment chapter covers topics that are part of the economics portion of the exam, which constitutes about 12% of the ORELA test. The lessons guide you in developing reading strategies to identify the elements of texts you'll encounter on the exam. Self-assessment quizzes follow each video lesson to ensure full comprehension of the material so you'll be fully prepared for the ORELA exam.

This exam is made up of multiple-choice questions covering world and US history, geography, culture and economics, in addition to economics. The objective of the exam is to ensure teacher preparation and compliance with student learning standards.

11 Lessons in Chapter 71: Inflation Measurement & Adjustment - ORELA Middle Grades Social Science
Test your knowledge with a 30-question chapter practice test
Consumer Price Index: Measuring the Cost of Living and Inflation

1. Consumer Price Index: Measuring the Cost of Living and Inflation

In this lesson, you'll learn what the Consumer Price Index is and how it measures changes in the level of prices in an economy. You'll also learn about the important economic concepts of inflation and deflation. Why do prices always seem to be going up?

The GDP Deflator and Consumer Price Index

2. The GDP Deflator and Consumer Price Index

Have you ever wondered how inflation is measured? This lesson will compare and contrast two of the indicators used to measure inflation - the consumer price index and the GDP deflator.

Consumer Price Index and the Substitution Bias

3. Consumer Price Index and the Substitution Bias

In this lesson, you'll learn about the Consumer Price Index and how it is measured. You'll also learn why many economists believe that the Consumer Price Index overstates inflation.

Adjusting Wages for the Inflation Rate

4. 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.

Gross Domestic Product: Nominal vs. Real GDP

5. Gross Domestic Product: Nominal vs. Real GDP

Watch this video and you'll learn the difference between nominal GDP and real GDP with the help of a memorable story about a competition between twin brothers.

Gross Domestic Product: How to Calculate Real GDP

6. Gross Domestic Product: How to Calculate Real GDP

Learn how to adjust economic output for inflation using real GDP. This calculation enables economists to remove the effect of rising prices and more accurately compare economic output from multiple years.

How to Calculate Real GDP Growth Rates

7. How to Calculate Real GDP Growth Rates

How can you tell how much the economy is really growing from year to year? In this lesson, you'll discover the formulas economists use to calculate real GDP growth rates and draw conclusions about real economic growth.

The Multiplier Effect and the Simple Spending Multiplier: Definition and Examples

8. The Multiplier Effect and the Simple Spending Multiplier: Definition and Examples

When money is spent in an economy, this spending results in a multiplied effect on economic output. This lesson explains the multiplier effect and the how to use the simple spending multiplier to calculate it.

Cost-Push Inflation: How the Supply Side of the Economy Leads to Inflation

9. Cost-Push Inflation: How the Supply Side of the Economy Leads to Inflation

Learn about cost-push inflation, when higher production prices lead to an increase in prices within the economy. Using real-world examples, this lesson describes what it is, what causes it and how economists illustrate it.

Demand-Pull Inflation vs Cost-Push Inflation

10. Demand-Pull Inflation vs Cost-Push Inflation

Discover two basic types of inflation, demand-pull and cost-push inflation. Learn what factors cause each type of inflation and some of the key differences between each.

Effects of Inflation on Suppliers and Demanders

11. Effects of Inflation on Suppliers and Demanders

In this lesson, you'll discover who benefits and who suffers from a sustained increase in prices within an economy. We'll cover the effects of expected and unexpected inflation on savers/creditors and borrowers/debtors.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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Other Chapters

Other chapters within the ORELA Middle Grades Social Science: Practice & Study Guide course

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