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- Explain how the consumer price index (CPI) represents the cost of living and inflation.
- Differentiate between the consumer price index and the GDP deflator.
- Understand how the CPI may overstate inflation.
- Learn how to compare wages for two cities by adjusting for inflation.
- Compare and contrast nominal and real GDP.
- Understand how to calculate real GDP.
- Explain how to calculate real GDP growth rates.
- Describe the multiplier effect.
- Learn how the supply side of the economy can lead to inflation.
- Compare and contrast demand-pull and cost-push inflation.
- Take a look at the ways inflation can affect 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. Stagflation: Definition, Causes & Effects
There are different types of economic problems, but few match stagflation. In this lesson, you'll learn what stagflation is, what causes it, and how it affects an economy suffering from it. A short quiz follows the lesson.
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Other chapters within the College Macroeconomics: Tutoring Solution course
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- Measuring the Economy: Tutoring Solution
- Understanding Unemployment: Tutoring Solution
- Aggregate Demand and Supply: Tutoring Solution
- Macroeconomic Equilibrium: Tutoring Solution
- Inflation and Unemployment: Tutoring Solution
- Economic Growth and Productivity: Tutoring Solution
- Money, Banking, and Financial Markets: Tutoring Solution
- Central Bank and the Money Supply: Tutoring Solution
- Fiscal and Monetary Policies: Tutoring Solution
- Foreign Exchange and the Balance of Payments: Tutoring Solution
- Inflows, Outflows, and Restrictions: Tutoring Solution