Ch 117: NMTA Social Science: Inflation Measurement & Adjustment

About This Chapter

Analyze the lessons across this chapter to refresh your memory on key topics dealing with inflation measurement and adjustment. The numerous lessons targeting content on the NMTA Social Science exam are presented through videos and text transcripts.

NMTA Social Science: Inflation Measurement & Adjustment - Chapter Summary

This chapter lets you brush up on the difference between demand-pull inflation and cost-push inflation while you're going through the lessons. You'll be set for answering questions on the NMTA Social Science exam about any of these topics as well:

  • The effects of inflation on suppliers and demanders
  • Multiplier effect and the simple spending multiplier
  • Wage adjustments
  • Calculating real GDP growth rates
  • The GDP deflator formula
  • How nominal and real GDP are different
  • The consumer price index
  • The substitution bias

You can watch each of the video lessons in a short amount of time and easily go back and forth between segments with the video tags. After you've looked over the video and transcript for a major topic, you can complete a practice quiz to double-check your grasp.

Objectives of the NMTA Social Science: Inflation Measurement & Adjustment Chapter

The NMTA Social Science test looks at whether you meet the standards for teacher licensure in the state of New Mexico. The Inflation Measurement & Adjustment chapter relates to the Economics content domain on the exam. This content domain makes up about 12% of your score across the total of 150 multiple-choice questions on the test.

11 Lessons in Chapter 117: NMTA Social Science: 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.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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Other chapters within the NMTA Social Science (303): Practice & Study Guide course

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