曼昆宏观经济学第24章.pptVIP

24;Measuring the Cost of Living;Measuring the Cost of Living;Content;THE CONSUMER PRICE INDEX;How the Consumer Price Index Is Calculated;How the Consumer Price Index Is Calculated;How the Consumer Price Index Is Calculated;How the Consumer Price Index Is Calculated;How the Consumer Price Index Is Calculated;How the Consumer Price Index Is Calculated;How the Consumer Price Index Is Calculated;Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example;Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example;Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example;Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example;Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example;How the Consumer Price Index Is Calculated;FYI: What’s in the CPI’s Basket?;China ;Discussion ;Problems in Measuring the Cost of Living;Problems in Measuring the Cost of Living;Substitution Bias The basket does not change to reflect consumer reaction to changes in relative prices. Consumers substitute toward goods that have become relatively less expensive. The index overstates the increase in cost of living by not considering consumer substitution.;Introduction of New Goods The basket does not reflect the change in purchasing power brought on by the introduction of new products. New products result in greater variety, which in turn makes each dollar more valuable. Consumers need fewer dollars to maintain any given standard of living.;Unmeasured Quality Changes If the quality of a good rises from one year to the next, the value of a dollar rises, even if the price of the good stays the same. If the quality of a good falls from one year to the next, the value of a dollar falls, even if the price of the good stays the same. The BLS tries to adjust the price for constant quality, but such differences are hard to measure.;The substitution bias, introduction of new goods, and unmeasured qua