1002-ch11曼昆 宏观经济学.pptVIP

Measuring the Cost of Living 11 In this chapter, look for the answers to these questions: What is the Consumer Price Index (CPI)? How is it calculated? What’s it used for? What are the problems with the CPI? How serious are they? How does the CPI differ from the GDP deflator? How can we use the CPI to compare dollar amounts from different years? Why would we want to do this, anyway? How can we correct interest rates for inflation? Measuring Price Level and Inflation A C T I V E L E A R N I N G 1 Calculate the CPI A C T I V E L E A R N I N G 1 Answers A C T I V E L E A R N I N G 1 Answers A C T I V E L E A R N I N G 2 Substitution bias A C T I V E L E A R N I N G 2 Answers A C T I V E L E A R N I N G 2 Answers A C T I V E L E A R N I N G 3 CPI vs. GDP deflator In each scenario, determine the effects on the CPI and the GDP deflator. A. Starbucks raises the price of Frappuccinos. B. A local manufacturer raises the price on industrial tractors it produces. C. Armani raises the price of the Italian jeans it sells in Hong Kong. A C T I V E L E A R N I N G 3 Answers A. Starbucks raises the price of Frappuccinos. The CPI and GDP deflator both rise. B. A local manufacturer raises the price on industrial tractors it produces. The GDP deflator rises, the CPI does not. C. Armani raises the price of the Italian jeans it sells in the Hong Kong. The CPI rises, the GDP deflator does not. A C T I V E L E A R N I N G 4 Converting to “today’s dollars” Annual tuition and fees, average of all public four-year colleges universities in the U.S. 1986-87: $1,414 (1986 CPI = 109.6) 2006-07: $5,834 (2006 CPI = 203.8) After adjusting for inflation, did students pay more for college in 1986 or in 2006? Convert the 1986 figure to 2006 dollars and compare. A C T I V E L E A R N I N G 4 Answers Annual tuition and fees, average of all public four-year colleges universities in the U.S. 1986-87: $1,414 (1986 CPI = 10