经济学原理第二章课件.pptxVIP

MeasuringtheCostofLivingEconomicsPRINCIPLESOFN.GregoryMankiwPremiumPowerPointSlides

byRonCronovich24

Inthischapter,

lookfortheanswerstothesequestions:WhatistheConsumerPriceIndex(CPI)?

Howisitcalculated?What’situsedfor?WhataretheproblemswiththeCPI?Howseriousarethey?HowdoestheCPIdifferfromtheGDPdeflator?HowcanweusetheCPItocomparedollaramountsfromdifferentyears?Whywouldwewanttodothis,anyway?Howcanwecorrectinterestratesforinflation?1

0TheConsumerPriceIndex(CPI)MEASURINGTHECOSTOFLIVINGmeasuresthetypicalconsumer’scostoflivingthebasisofcostoflivingadjustments(COLAs)inmanycontractsandinSocialSecurity

MEASURINGTHECOSTOFLIVING3HowtheCPIIsCalculatedFixthe“basket.”

TheBureauofLaborStatistics(BLS)surveysconsumerstodeterminewhat’sinthetypicalconsumer’s“shoppingbasket.”Findtheprices.

TheBLScollectsdataonthepricesofallthegoodsinthebasket.Computethebasket’scost.

Usethepricestocomputethetotalcostofthebasket.0

MEASURINGTHECOSTOFLIVING4HowtheCPIIsCalculatedChooseabaseyearandcomputetheindex.

TheCPIinanyyearequalsComputetheinflationrate.

ThepercentagechangeintheCPIfromtheprecedingperiod.100xcostofbasketincurrentyearcostofbasketinbaseyearCPIthisyear–CPIlastyearCPIlastyearInflation

ratex100%=0

MEASURINGTHECOSTOFLIVING5EXAMPLEbasket:{4pizzas,10lattes}$12x4+$3x10=$78$11x4+$2.5x10=$69$10x4+$2x10=$60costofbasket$3.00$2.50$2.00priceoflatte$122009$112008$102007priceofpizzayearComputeCPIineachyear2007:100x($60/$60)=1002008:100x($69/$60)=1152009:100x($78/$60)=130Inflationrate:015%115–100100x100%=13%130–115115x100%=using2007baseyear:

ACTIVELEARNING1

CalculatetheCPI6CPIbasket:

{10lbsbeef,

20lbschicken}TheCPIbasketcost$120

in2004,theb