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Ch 49: Praxis Middle School Social Studies: Inflation Measurement & Adjustment

About This Chapter

Re-touch on the concepts of inflation and adjustments in economics by going through this helpful chapter. Be ready for any economics question on the Praxis Middle School Social Studies Test by using our quiz questions as practice.

Praxis Middle School Social Studies: Inflation Measurement & Adjustment - Chapter Summary

The last time your reviewed economics may have been some time back, in college or even high school, so some of the more advanced terminology in this inflation measurement and adjustment chapter may not be as familiar. Don't walk blindly into the Praxis Middle School Social Studies Test, and instead get yourself reacquainted with this terminology by looking at our lessons about the following:

  • Formulas for determining the cost of living and inflation rates
  • The Gross Domestic Product (GDP) calculation formulas
  • The Consumer Price Index and the GDP Deflator
  • The substitution bias of the Consumer Price Index
  • The impact that inflation rates have on wages and related adjustments
  • The difference between the Real and the Nominal GDP
  • Steps for determining growth rates of the Real GDP
  • Inflation caused by supplying the economy and cost-push inflation
  • The simple spending multiplier and the multiplier effect
  • Cost-push inflation vs. demand-pull inflation
  • Inflation's impact on demanders and suppliers

One of the benefits of using our materials to study for the Praxis Middle School Social Studies Test includes convenience. We start off by giving you a user dashboard, so you can easily locate the materials you want, find where you left off last, and check out your assessment scores to verify your progress. We also make sure our site is mobile-friendly, so no matter which device you use, you get the full experience and all of the perks. As an added bonus, a mobile-friendly site means you're not limited to where and when you study. Watch a few lessons while you're on the bus, sitting on your couch, or even at a restaurant. After all, you have to study when it's convenient for you in a way that make sense, and every one of our chapters is designed with that in mind.

11 Lessons in Chapter 49: Praxis Middle School Social Studies: 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.

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

8. 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.

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

9. 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.

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.
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