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5 - Measuring Inflation: CPI/PPI LEARNING OBJECTIVE: Differentiate between the characteristics of the CPI and PPI. The producer price index (PPI) contains measures of all of the following except: a.) final goods b.) exported goods c.) crude goods d.) intermediate goods Terms to consider: - CPI - PPI UNIT 1 CHALLENGE 1.2: Measuring Economic Performance Kate Eskra 5 - Measuring Inflation: CPI/PPI LEARNING OBJECTIVE: Differentiate between the characteristics of the CPI and PPI. The producer price index (PPI) contains measures of all of the following except: a.) final goods b.) exported goods c.) crude goods d.) intermediate goods Terms to consider: - CPI - PPI 

          5 - Measuring Inflation: CPI/PPI
LEARNING OBJECTIVE: Differentiate between the characteristics of the CPI and PPI.

The producer price index (PPI) contains measures of all of the following except:
a.) final goods
b.) exported goods
c.) crude goods
d.) intermediate goods

Terms to consider:
- CPI
- PPI

UNIT 1 CHALLENGE 1.2: Measuring Economic Performance
Kate Eskra

5 - Measuring Inflation: CPI/PPI 
LEARNING OBJECTIVE: Differentiate between the characteristics of the CPI and PPI.

The producer price index (PPI) contains measures of all of the following except:
a.) final goods
b.) exported goods
c.) crude goods
d.) intermediate goods

Terms to consider:
- CPI
- PPI
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5 measuring inflation cpippi learning objective differentiate between the characteristics of the cpi and ppi the producer price index ppi contains measures of all of the following except a f 50361

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Principles of Economics
Gregory Mankiw 8th Edition
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5 - Measuring Inflation: CPI/PPI LEARNING OBJECTIVE: Differentiate between the characteristics of the CPI and PPI. The producer price index (PPI) contains measures of all of the following except: a.) final goods b.) exported goods c.) crude goods d.) intermediate goods Terms to consider: - CPI - PPI UNIT 1 CHALLENGE 1.2: Measuring Economic Performance Kate Eskra 5 - Measuring Inflation: CPI/PPI LEARNING OBJECTIVE: Differentiate between the characteristics of the CPI and PPI. The producer price index (PPI) contains measures of all of the following except: a.) final goods b.) exported goods c.) crude goods d.) intermediate goods Terms to consider: - CPI - PPI
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Transcript

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00:01 Okay, this problem is a consumer price index problem, and they give you a really nice formula, so we'll just start right there.
00:08 The consumer price index equals the consumer price index.
00:14 Sub -zero means the initial amount.
00:16 It is the beginning consumer price index for the n year period.
00:21 So that is where we're going to begin, and then we'll finish up one plus r over 100.
00:27 R is whatever rate they're talking about, and n is the time in years.
00:31 Well, if you read the problem, it says the cpi was 163 for 1998.
00:36 Well, that's where you're beginning, so 163 .0 is that.
00:41 They continue telling us that the cpi in 2008 is 215 .3, and if you notice, the distance, excuse me, the time that is elapsed from 2008 to 1998 is 10 years, so that is your n, and it is the r in this problem that you are solving for because they want to know the average annual inflation rate, so r, of course, is the rate.
01:15 Excuse me.
01:17 So i will, excuse me again.
01:22 So i will need to divide each side by 163 in order to begin to isolate that r.
01:34 So 215 .3 divided by 163 is some version of 1 .32 .3.
01:42 So i'm gonna do 0 .2086, and you can get a very nice, well, a more exact answer on your calculator.
01:52 I have the wrong number up here.
01:54 I should erase that.
01:55 That's just a 10.
01:56 That's my mistake...
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