In this lesson, our instructor Jibin Park gives an introduction on inflation. He starts by explaining what inflation is and the cost of inflation. He then does on to discuss nominal and real interest rates, wage-price spiral, monetarist view of inflation, measurement and calculation of inflation, consumer price index, producer price index, and gdp deflator.
Inflation means that the purchasing power of money decreases, meaning that the amount of money that you have today has less real value than it did in previous times
Inflation arbitrarily redistributes wealth from savers to borrowers
Senior citizens relying on fixed income and savers tend to lose with inflation
Borrowers can benefit from inflation as the real amount of money paid back is worth less than when money was originally borrowed
The wage-price spiral explains inflation from a supply and demand perspective whereas a monetarist view of inflation argues that the quantity of money in the economy is the primary culprit that causes inflation
The CPI, PPI and GDP Deflator are common measures of inflation
Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.
This book created a 5-step plan to help you study more effectively, use your preparation time wisely, and get your best score. This book includes two full-length practice exams modeled on the real test, all the terms and concepts you need to know to get your best score, and your choice of three customized study schedules.
This book includes an in-depth preparation for both AP economics exams. It features two full-length practice tests, one in Microeconomics and one in Macroeconomics, and all test questions answered and explained. It also features a detailed review of all test topics, which include: supply and demand, theory of consumer choice, economics in the public sector, costs, perfect and imperfect competition, monopolies, labor resources, game theory, the national income and gross domestic product, inflation and unemployment, fiscal policy, money and banking, monetary policy, economic growth, international trade and exchange, interest rate determination, and the market for loanable funds.