About This Chapter
MTTC History: Inflation Measurement & Adjustment - Chapter Summary
Make your review for the MTTC History exam easy with the video lessons in this chapter. These videos on inflation measurement and adjustment offer a quick option for getting ready for similar questions on the exam. In this chapter, you'll find exam-relevant lessons on:
- Methods for measuring cost of living increases and inflation
- Differences between the consumer price index and the GDP deflator
- Wage comparisons using inflation
- Nominal and real gross domestic products
- Calculations for real GDP and real GDP growth rates
- Uses for the simple spending multiplier
- Comparison of demand-pull inflation and cost-push inflation
- Inflation's effect on suppliers and demanders
Inflation measurement and adjustment concepts are broken down into small, manageable chunks that make learning these topics simple and fun. Our instructors are experts in their field and present each topic in easy-to-follow steps that utilize real-world examples to help you quickly retain critical info for the exam.
Objectives of the MTTC History: Inflation Measurement & Adjustment Chapter
The state of Michigan uses the MTTC History exam to verify your knowledge of history topics and readiness to teach those topics to students. The exam is one part of the licensure process and features all multiple-choice questions. Use the quizzes in our lessons to gauge your comprehension of inflation topics that are asked about in the interdisciplinary perspectives section of the exam. Roughly one quarter of the exam questions are part of the interdisciplinary perspectives section. Our quizzes and the chapter exam can help you get used to the format of questions found on the exam as well as the content.
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 MTTC History: Practice & Study Guide course
- MTTC History: Historical Research
- MTTC History: Tools for the Classroom
- MTTC History: The Stone Age
- MTTC History: The Bronze & Iron Ages
- MTTC History: Ancient Civilizations
- MTTC History: Ancient Middle East & India
- MTTC History: Early China & Japan
- MTTC History: Foundations of Religion
- MTTC History: Hinduism
- MTTC History: Buddhism
- MTTC History: Confucianism
- MTTC History: Judaism
- MTTC History: Christianity
- MTTC History: Islam
- MTTC History: Classical Greece
- MTTC History: The Roman Republic & The Roman Empire
- MTTC History: Government & Culture in the Middle Ages
- MTTC History: War, Revolution & Culture in France & England
- MTTC History: European Renaissance & Reformation
- MTTC History: African Cultures Before European Colonization
- MTTC History: Exploration & Colonization of the Americas
- MTTC History: Revolution & War in the Americas
- MTTC History: Revolution & Independence in Europe
- MTTC History: The Industrial Revolution & Enlightenment
- MTTC History: Germany During the World Wars
- MTTC History: The World Wars
- MTTC History: The Cold War
- MTTC History: Pre-Columbian North America
- MTTC History: Early North American Settlements
- MTTC History: Road to the American Revolution
- MTTC History: The American Revolution
- MTTC History: Ratification of the U.S. Constitution
- MTTC History: The Virginia Dynasty
- MTTC History: Jacksonian Democracy
- MTTC History: Manifest Destiny
- MTTC History: The American Civil War
- MTTC History: American Reconstruction
- MTTC History: Industrialization & Urbanization in the U.S.
- MTTC History: The Progressive Era
- MTTC History: American Imperialism
- MTTC History: The Roaring 20s in the U.S.
- MTTC History: The Great Depression in the U.S.
- MTTC History: World War II
- MTTC History: The Cold War & U.S. Politics
- MTTC History: Protests, Activism & Civil Rights
- MTTC History: America in the 1970s
- MTTC History: Contemporary American Presidents
- MTTC History: Introduction to Geography
- MTTC History: Spatial Processes
- MTTC History: Geography Tools
- MTTC History: The Dispersal of Humans & Culture
- MTTC History: Human Settlement Patterns
- MTTC History: Population & the Environment
- MTTC History: Ethnicity & Geography
- MTTC History: Geography of Languages, Religions & Material Culture
- MTTC History: Basics of Political Science
- MTTC History: American Government Overview
- MTTC History: Constitutional Democracy in the U.S.
- MTTC History: Federalism in the U.S.
- MTTC History: Political Ideologies & Philosophy
- MTTC History: American Political Culture, Opinion & Behavior
- MTTC History: Civil Liberties in the U.S.
- MTTC History: Civil Rights in the U.S.
- MTTC History: U.S. Political Parties
- MTTC History: U.S. Electoral Systems
- MTTC History: Interest Groups & American Democracy
- MTTC History: Federal Bureaucracy in the U.S.
- MTTC History: Types of Legislatures in Government
- MTTC History: The American Presidency
- MTTC History: The American Congress
- MTTC History: The Federal Judicial System
- MTTC History: Introduction to Economics
- MTTC History: Scarcity, Choice & the Production Possibilities Curve
- MTTC History: Demand, Supply & Market Equilibrium
- MTTC History: Aggregate Demand & Supply
- MTTC History: Measuring the Economy
- MTTC History: Federal Government & the American Economy
- MTTC History: Understanding Unemployment
- MTTC History: Inflation & Unemployment
- MTTC History: Macroeconomic Equilibrium
- MTTC History: Money, Banking & Financial Markets
- MTTC History: Central Bank & the Money Supply
- MTTC History: Fiscal & Monetary Policies
- MTTC History: Foreign Exchange & the Balance of Payments
- MTTC History: Democratic Values & Society