About This Chapter
Measurements of Inflation - Chapter Summary
Gain greater insight into different measurements of inflation with help from the short lessons in this chapter. Developed by top instructors, these lessons offer in-depth analyses of crude materials, the core rate of inflation, cost of living adjustments and much more. When you're ready, check your knowledge of the lessons' contents by taking multiple-choice quizzes. The Dashboard keeps track of your progress and enables you to submit lesson topic questions to our subject-matter experts. Once you've completed this chapter, you will be able to:
- Define the consumer price index (CPI) and discuss how it measured
- Compare and contrast the consumer price index and the GDP deflator
- Explain how the producer price index (PPI) predicts increases in consumer prices
- Differentiate between intermediate goods and finished goods
- List and describe the three phases of the relationship between inflation and unemployment
- Discuss differences between demand-pull inflation and cost-push inflation
- Explain how fixed and adjustable rates differ as they relate to inflation over time
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. 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.
3. 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.
4. What is the Core Rate of Inflation?
This lesson discusses the difference between core inflation and headline inflation. It also goes into detail on the different ways to measure inflation including the CPI and the PCE while relating core inflation to aggregate supply.
5. Producer Price Index: Definition & Formula
In this lesson, you will become familiar with the Producer Price Index (PPI). You will see how the PPI can predict increases in consumer prices, and learn how to calculate a basic PPI before using it to predict inflation.
6. Crude Materials: Definition, Categorization & Examples
This lesson will define crude materials. You'll also learn about the different categories of crude materials as well as numerous examples of crude materials and their eventual potential uses.
7. Intermediate Goods: Definition & Examples
Businesses don't just sell goods. They also consume goods. In this lesson, you'll learn about intermediate goods, some related concepts, and be provided some examples.
8. What are Finished Goods? - Definition & Example
In this lesson learn what the difference is between products that are ready for sale, known as finished goods, and products that you have bought and are using right now. You'll also see why using this term is important for businesses.
9. Inflation & Unemployment Relationship Phases: Phillips, Stagflation & Recovery
High inflation and unemployment are two things we don't like to see in the economy. In this lesson, you'll learn about the relationship between inflation and unemployment and three distinct phases of this relationship.
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. Cost of Living Adjustment: History & Formula
In this lesson, the history and formula of the Cost of Living Adjustment is explored. You'll also learn how to apply the Cost of Living Adjustment to a Social Security benefit payment.
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Other chapters within the UExcel Introduction to Macroeconomics: Study Guide & Test Prep course
- Fundamental Concepts of Macroeconomics
- Government Failure in Macroeconomics
- Demand, Supply & the Economic Market
- Role of Government in Macroeconomics
- National Income Accounting Overview
- Unemployment & the Economy
- Basic Concepts of Inflation
- The Business Cycle & Economics
- Aggregate Demand in Economics
- Fiscal Policy in Economics
- Budgets & National Debt
- Understanding Monetary Policy
- Fundamentals of Money
- Understanding the Federal Reserve System
- Supply-Side Policy & Policy Comparisons
- UExcel Introduction to Macroeconomics Flashcards