Ch 5: Inflation Measurement and Adjustment: Help and Review

About This Chapter

The Inflation Measurement and Adjustment chapter of this College-Level Principles of Macroeconomics Help and Review course is the simplest way to master inflation measurement and adjustment. This chapter uses simple and fun videos that are about five minutes long plus lesson quizzes and a chapter exam to ensure students learn the essentials of inflation measurement and adjustment.

Who's it for?

Anyone who needs help learning or mastering college macroeconomics material will benefit from taking this course. There is no faster or easier way to learn the subject. Among those who would benefit are:

  • Students who have fallen behind in understanding the consumer price index or working with gross domestic product
  • Students who struggle with learning disabilities or learning differences, including autism and ADHD
  • Students who prefer multiple ways of learning economics (visual or auditory)
  • Students who have missed class time and need to catch up
  • Students who need an efficient way to learn about inflation measurement and adjustment
  • Students who struggle to understand their teachers
  • Students who attend schools without extra economics learning resources

How it works:

  • Find videos in our course that cover what you need to learn or review.
  • Press play and watch the video lesson.
  • Refer to the video transcripts to reinforce your learning.
  • Test your understanding of each lesson with short quizzes.
  • Verify you're ready by completing the Inflation Measurement and Adjustment chapter exam.

Why it works:

  • Study Efficiently: Skip what you know, review what you don't.
  • Retain What You Learn: Engaging animations and real-life examples make topics easy to grasp.
  • Be Ready on Test Day: Use the Inflation Measurement and Adjustment chapter exam to be prepared.
  • Get Extra Support: Ask our subject-matter experts any inflation measurement and adjustment question. They're here to help!
  • Study With Flexibility: Watch videos on any Web-ready device.

Students will review:

This chapter helps students review the concepts in an Inflation Measurement and Adjustment unit of a standard college-level principles of macroeconomics course. Topics covered include:

  • Adjusting wages for the inflation rate
  • How to calculate real gross domestic product growth rates
  • The multiplier effect and the simple spending multiplier
  • Cost-push inflation
  • Demand-pull inflation
  • Effects of inflation on suppliers and demanders

13 Lessons in Chapter 5: Inflation Measurement and Adjustment: Help and Review
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.

Real Wage: Definition & Formula

12. Real Wage: Definition & Formula

Rising prices eat away at the value of your pay, and raises aren't always worth as much as you may think. In this lesson, you'll learn about real wages and how to calculate them. You'll also have a chance to take a short quiz after the lesson.

The Multiplier Effect in Economics: Definition, Formula & Example

13. The Multiplier Effect in Economics: Definition, Formula & Example

In this lesson, we'll examine the multiplier effect, which is a chain reaction of activities that stimulate the economy. Then we'll look at some examples and a formula that can be applied to any scenario to help explain the multiplier effect.

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

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Support