Ch 78: MTTC History: Inflation Measurement & Adjustment

About This Chapter

Use the short videos and quizzes in this chapter to prepare for questions about inflation measurement and adjustment on the MTTC History exam. Study GDP, inflation and the consumer price index.

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.

11 Lessons in Chapter 78: MTTC History: Inflation Measurement & Adjustment
Test your knowledge with a 30-question chapter practice test
Consumer Price Index: Measuring the Cost of Living and Inflation

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?

The GDP Deflator and Consumer Price Index

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.

Consumer Price Index and the Substitution Bias

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.

Adjusting Wages for the Inflation Rate

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.

Gross Domestic Product: Nominal vs. Real GDP

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.

Gross Domestic Product: How to Calculate Real GDP

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.

How to Calculate Real GDP Growth Rates

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.

The Multiplier Effect and the Simple Spending Multiplier: Definition and Examples

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.

Cost-Push Inflation: How the Supply Side of the Economy Leads to Inflation

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.

Demand-Pull Inflation vs Cost-Push Inflation

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.

Effects of Inflation on Suppliers and Demanders

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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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