Tuesday, November 1, 2016

Ch. 8 Reading Guide (Inflation 141-149)

1.  How does the Consumer Price Index (CPI) measure inflation?
2.  Describe the "market baskets" that are used by the Bureau of Labor Statistics in CPI calculation?  Why are they weighted?
3.  Contrast anticipated and unanticipated inflation.
4.  Review the groups helped and harmed by inflation.
5.  Define deflation and identify its effects.

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