Ch 5: Inflation Measurement and Adjustment: Homework Help

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. Unanticipated Inflation: Definition & Overview

In this lesson, you'll learn about unanticipated inflation. Take a look at the positive and negative effects associated with it, who it affects, as well as a real life example.

13. What is an Economic Model? - Definition & Example

Economic models are used by economists to communicate current economic conditions - causes and effects on the future of the economy. This lesson will present economic models, definitions, and examples to help bring clarity to the issue.

14. What is an External Environment in Business? - Definition, Types & Factors

What leads to the success of a business? Does it all come from within the company? No, business environments and how companies react to external factors are key to their success. In this lesson, you'll take a look at these external environments and test your new knowledge with a quiz.

15. What is Hyperinflation? - Definition, Causes & Effects

In 2008, the inflation rates in Zimbabwe were so high that something that cost one dollar today would cost two dollars tomorrow. That's because they were experiencing hyperinflation. In this lesson, learn about the causes, effects, and solutions for hyperinflation.