Chapter 11 - Measuring the Cost of Living

Substitution

________ bias- when the price change from one year to the next, changes disproportionately.

price index

Producer ________- a measure of the cost of a basket of goods and services bought by firms.

GDP deflator

The ________- the measure of the overall level of prices in the economy.

Inflation rate the

________ percentage change in the price index from the preceding period.

overall level of prices

The purpose of measuring the ________ in the economy is to allow us to compare dollar figures from different times.

price index

Consumer ________ (CPI)- a measure of the overall cost of the goods and services bought by a typical consumer.