Macroeconomics: Measuring Inflation (Inflation Rate, market baskets, CPI, price indices)

Описание: In this video Mr Tweet discusses how to measure inflation, compared to just observing a change in price. Includes a quick discussion of statistical modeling. Examples of creating a market baskets to use with the growth formula to find the inflation rate. Also includes a discussion of CPI and price indices, and how to use market baskets to find a CPI value.

Formulas:

growth rate = (new - old) / old * 100

Current CPI / 100 = Base Year Market Basket / Market Basket for Current Year

The growth rate formula will give you inflation rate when you use market baskets or CPI values in the formula.