Macroeconomics + Economy 2009 Update 18th Edition by Campbell McConnell, Sean Masaki Flynn,Stanley Brue

Exercise 15

What is the Consumer Price Index (CPI) and how is it determined each month How does the Bureau of Labor Statistics calculate the rate of inflation from one year to the next What effect does inflation have on the purchasing power of a dollar How does it explain differences between nominal and real interest rates How does deflation differ from inflation