ECN 204 Lecture Notes - Lecture 4: Gdp Deflator, Ryerson University, Price Level
Document Summary
Readings: chapter 6 (please read the related topics from other introductory level of microeconomics textbooks for your own benefits). You have to make your own note from lecture. In this chapter, look for the answers to these questions: The consumer price index (cpi: measures the typical consumer"s cost of living, the basis of cost of living adjustments (colas) in many contracts and in social security. How the cpi is calculated: determine the basket. Statistics canada surveys consumers to determine what"s in the typical consumer"s shopping basket. : find the prices. Statistics canada collects data on the prices of all the goods in the basket: compute the basket"s cost. Use the data on prices to compute the total cost of the basket: choose a base year and compute the index. The cpi in any year equals: compute the inflation rate. The percentage change in the cpi from the preceding period.
