About This Chapter
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
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?
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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Other chapters within the Introduction to Macroeconomics: Help and Review course
- The Production Possibilities Curve: Help & Review
- Comparative Advantage, Specialization and Exchange: Help and Review
- Demand, Supply and Market Equilibrium: Help and Review
- Measuring the Economy: Help and Review
- Understanding Unemployment: Help and Review
- Aggregate Demand and Supply: Help and Review
- Macroeconomic Equilibrium: Help and Review
- Inflation and Unemployment: Help and Review
- Economic Growth and Productivity: Help and Review
- Money, Banking, and Financial Markets: Help and Review
- Central Bank and the Money Supply: Help and Review
- Fiscal and Monetary Policies: Help and Review
- Foreign Exchange and the Balance of Payments: Help and Review
- Inflows, Outflows, and Restrictions: Help and Review
- Government & the Economy: Help and Review
- The U.S. Economic System