Terms
Equations
Calculate CPI
Terms 2
Random
100
What does CPI stand for
What is Consumer Price Index
100
What is the CPI equation
What is Price of Basket in Current Year/ Price of Basket in Base year x 100
100
What is first step
What is Fix the Basket (determine which products go in)
100
What is Core CPI
What is a measure of the overall cost of consumer goods and services excluding food and energy
100
What is biggest category in CPI basket
What is Housing
200
What is Consumer Price Index
What is a measure of the overall costs of the goods and services bought by a typical consumer
200
What is the inflation rate equation
What is (CPI 2 - CPI 1)/CPI 1 x 100
200
What is Step 2
What is Find the prices (at each point in time)
200
What is producer price index
What is a measure of the cost of a basket of goods and services bought by firms
200
What region has the highest cost of living in the US
What is District of Columbia
300
What is the inflation rate
What is percentage change in the price index from the preceding period.
300
What is the equation for amount in Today's dollars
What is Amount in Year T x (CPI Today/CPI Year T)
300
What is Step 3
What is Compute Baskets Cost (P x Q)
300
If the CPI is 200 in year 1 and 300 today, then $600 in 1980 has the same purchasing power as how much today
What is $900
400
What is nominal interest rate
What is the interest rate as usually reported without a correction for the effects of inflation
400
What is the real interest rate equation
What is Real Interest Rate = Nominal Interest Rate - Inflation Rate
400
What is Step 4
What is Chose a base year and compute (Base year will be the benchmark)
400
What is interest rate corrected for the effects of inflation
What is real interest rate
500
What is real interest rate
What is the interest rate corrected for the effects of inflation
500
What is GDP Deflator Equation
What is (Nominal GDP/Real GDP) x 100
500
What is Step 5
What is Compute (100 x (Current Year Basket/Basket of Base Year)
500
What is indexation
What is the automatic correction by law or contract of a dollar amount for the effects of inflation
500
What are problems with CPI
What is substitution bias, introduction of new goods, differences in quality
M
e
n
u