Mod 15 Flashcards
1
Q
Aggregate price level
A
Measure of overall level of prices in the economy.
2
Q
Market basket
A
Hypothetical set of consumers purchases
3
Q
PI of given year
A
PI|yr| = (C of MB|yr| / C of MB|Byr|) 100
4
Q
Price index
A
Measures cost to purchase given MB in given year.
5
Q
CPI
A
Meas. Cost of MB of typical urban fam.
6
Q
PPI
A
Meas. Changes in prices of goods and services purchased by producers
7
Q
GDP deflator
A
For |yr| is 100(ratio of nom gdp to real gdp)
8
Q
Calc. Inflation rate
A
IR= PI yr2 - PI yr1 / PI yr1
