经济学原理第二章课 的件.pptVIP

Measuring the Cost of Living;In this chapter, look for the answers to these questions:;The Consumer Price Index (CPI);How the CPI Is Calculated;How the CPI Is Calculated;EXAMPLE;;;;What’s in the CPI’s Basket?;CPI basket: {10# beef,  20# chicken} 2004-5: Households bought CPI basket. 2006: Households bought {5 lbs beef, 25 lbs chicken}.;;;Problems with the CPI: Substitution Bias;Problems with the CPI: Introduction of New Goods;Problems with the CPI: Unmeasured Quality Change;Problems with the CPI;Two Measures of Inflation, 1950-2007;Imported consumer goods: included in CPI excluded from GDP deflator;In each scenario, determine the effects on the CPI and the GDP deflator. A. Starbucks raises the price of Frappuccinos. B. Caterpillar raises the price of the industrial tractors it manufactures at its Illinois factory. C. Armani raises the price of the Italian jeans it sells in the U.S. ;A. Starbucks raises the price of Frappuccinos. The CPI and GDP deflator both rise. B. Caterpillar raises the price of the industrial tractors it manufactures at its Illinois factory. The GDP deflator rises, the CPI does not. C. Armani raises the price of the Italian jeans it sells in the U.S. The CPI rises, the GDP deflator does not. ;Correcting Variables for Inflation:Comparing Dollar Figures from Different Times;In our example, year T = 12/1964, “today” = 12/2007 Min wage = $1.15 in year T CPI = 31.3 in year T, CPI = 211.7 today;Correcting Variables for Inflation:Comparing Dollar Figures from Different Times;The U.S. Minimum Wage in Current Dollarsand Today’s Dollars, 1950-2007;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. ;;Correcting Variables for Inflation:Indexation;Correcting Variables for