TOPICS
- Definition of
Inflation
- What is an Index?
- Calculate the Inflation Rate using an Index
- Causes and Effects of Inflation
- Costs of Inflation
OUTCOMES
Define inflation,
deflation, and disinflation
Calculate the inflation rate using
price index data
What is a price index and how is
the CPI measured?
Explain the two types of inflation
(demand-pull; cost-push) using the AD/AS
graph
What is the rule of 70 and apply
it to the price level.
If the population of a country is
25 million and it is growing a rate of 4% a year, how
many years will it take for the population to reach 50
million? 100 million? 200 million (assuming that the
growth rate stays at 4%)?
Who is hurt by unanticipated
nflation and who may benefit from unanticipated
inflation. (redistributive effects of
inflation).
What are the output and employment
effects of demand-pull and cost-push inflation? (Who is
hurt and who is helped?)
How does the inflation rate affect
real income growth?
Recently a teachers'
union argued that the standard of living of teachers
working for the school district was falling. The
negotiating team for the school board replied that this
was not true because the teachers had received
significant increases in nominal income through
collective bargaining. Could the union statement be
correct?
If inflation is going down then
what is happening to the average level of prices in an
economy. OR what is the difference between deflation and
disinflation?
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