L11 Econ 1021 Chapter Notes - Chapter 5: Irving Fisher, Federal Funds Rate, Tax Bracket
Document Summary
In the short run movements in apl are closely related to the overall movements of the economy up or down called business cycles (expansions/recessions) Cpi services of goods of goods services of base current. Cost of base year base year year basket basket in in and and. Consumer price index for all urban consumers (c-cpi-u): the bls also calculates the cpi for urban wage earners and clerical. Increase in government spending because of indexed ss contracts: underestimating living standard improvements, changes to cpi calculations made since the report has improved the quality of the. Cpi calculations: quality adjustment bias, cpi ignores improvements in the quality of products and introduction of new products, there was no internet and no cell phones in 1985. Innovations widen consumer choices thereby making a given amount of money worth more. In the mid 1980s, israel experienced a clean inflation (i. e. , not accompanied by war or political instability).