Module The Measurement and Calculation of Inflation

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ModuleThe Measurementand Calculation of
Inflation
15

• KRUGMAN'S
• MACROECONOMICS for AP

Margaret Ray and David Anderson
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What you will learnin this Module

• How the inflation rate is measured
• What a price index is and how it is calculated
• The importance of the consumer price index and
  other price indexes

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Price Indexes and the Aggregate Price Level

• Aggregate Price Level

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Market Baskets and Price Indexes

• Market Basket

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Market Baskets and Price Indexes

• Price Index

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The Consumer Price Index

• Consumer Price Index (CPI)
• What is it?

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Other Price Measures

• Producer Price Index (PPI)
• GDP deflator
• Coincidence of inflation measures