宋利芳《经济学专业英语教程（精编版）（第二版）》Unit 6.pptVIP

Unit 6Text: Inflation（通货膨胀） 1. Key words2. Measurement of Inflation3. Causes of Inflation4. Effects of inflation5. Translate the following into Chinese6. Questions inflation rateprice indexconsumer price indexproducer price indexbase yeardemand-pull inflationcost-push inflationpotential outputfull employmentincome distributionpanic buyingnatural rate of unemployment expectations inflationsupply-shock inflationcapital goods1. Key words There are several different price indexes, each using a different bundle of goods. To track the movement of prices that are important to American households, the government collects price data on the bundle of goods that represent how the average household spends its income. This index is called the consumer price index,or CPI. To determine the bundle, the government, through the Bureau of LaborStatistics of the Department of Commerce, conducts a Consumer Expenditure Survey. The information from the survey is then used to determine the importance of morethan 2,000 different expenditure categories. Weights are assigned to the expenditure categories to reflect the importance of each in household spending. Another different measure of prices is the producer price index, which measures the average level of prices of goods sold by producers. This index is useful because it gives us an idea of what will happen to consumer prices in the near future, eventually retailers will have to charge higher prices. These will be reflected in a higher CPI.2. Measurement of Inflation 1、Runaway or hyperinflation is an extreme formresulting from political or economic instability. The demand-pull and cost-push inflation that we now experience are more common forms.2、Supply shock :Supply-shock inflation results from infrequent drastic changes in the production cost of fundamental products.3、Expectations: Inflation can sometimes occur simply because we expect it to.3. CAUSES of inflation 1、Income redistribution2、Inflation and the standard of living3、 Unem