Price Level

This section is about measuring the cost of living. How is inflation measured? What is the CPI? Is inflation a good or bad thing? What about deflation?

Assignments for this section:

• Learn about how the Consumer Price Index and inflation are measured and the limits of this measure by watching the videos, or reading Mankiw and Taylor, 'Measuring the Cost of Living'. Make sure to answer the quizzes, too, a good way to practice retrieval and check your understanding (and they count towards your grade).
• Find the data for inflation for your country. Is your inflation high or low? How has it changed over time? Post your analysis on the board below. Look at what inflation looks like on other countries and do comment on the other posts. Make sure to check the guidelines.

If you want to learn more about hyperinflation and deflation, here are a few videos you might enjoy.