About This Chapter
MTEL History: Inflation Measurement and Adjustment - Chapter Summary
The lessons in this chapter focus on everything you need to know about inflation measurement and adjustment to help you get ready for the MTEL History Exam. The videos cover all the topics you could be tested on, including:
- Consumer price index
- Adjusting wages for the inflation rate
- Nominal vs. real Gross Domestic Product
- Calculating real GDP and real GDP growth rates
- The multiplier effect and the simple spending multiplier
- Cost-push inflation
- Demand-pull inflation
- Inflation's effects on suppliers and demanders
Our expert instructors take you through each topic and highlight the most important points. You'll learn from both video lessons and self-assessment quizzes, which will give you multiple ways of being exposed to the content, improving your comprehension and retention.
Objectives of the MTEL History: Inflation Measurement and Adjustment Chapter
The MTEL History Exam is a comprehensive test of your knowledge and understanding of historical events throughout the world. Your score will be used to determine your eligibility to teach history in Massachusetts. The topics in this Inflation Measurement and Adjustment chapter come under the Geography, Government and Economics portion of the test. Twenty-five percent of the questions will be on topics relating to this objective. You can improve your odds of getting these questions right by practicing with the self-assessment quizzes that accompany this chapter's video lessons.
The MTEL History exam consists of multiple-choice and open-response questions. The multiple-choice items require you to select the correct response from a group of alternatives. The open-response items require you to construct an essay on a subject related to history that is effective and well written.
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.
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Other chapters within the Geography, Government & Economics: Homework Help Resource course
- Environment & Population
- American Government Overview
- Important Documents & Speeches in US History
- Constitutional Democracy Overview
- Political Ideologies & Philosophy
- American Political Culture, Opinion & Behavior
- Understanding Civil Liberties in the U.S.
- Understanding Civil Rights in the U.S.
- Interest Groups & American Democracy
- Federal Bureaucracy in the U.S.
- The American Presidency
- The American Congress
- Federal Judicial System Overview
- Economics Overview
- Scarcity, Choice & Production
- Demand, Supply & Market Equilibrium
- Aggregate Demand & Supply
- Economic Measurement
- Federal Government & the American Economy