Discussion of inflation, the CPI index and owners' equivalent rent. [Economics playlist: Lesson 8 of 20]

Principles of Macroeconomics 2e covers the scope and sequence of most introductory economics courses. The text includes many current examples, which are handled in a politically equitable way. The outcome is a balanced approach to the theory and application of economics concepts. The second edition has been thoroughly revised to increase clarity, update data and current event impacts, and incorporate the feedback from many reviewers and adopters.Changes made in Principles of Macroeconomics 2e are described in the preface and the transition guide to help instructors transition to the second edition.

By the end of this section, you will be able to:

Use the Consumer Price Index (CPI) to calculate U.S. inflation rates
Identify several ways the Bureau of Labor Statistics avoids biases in the Consumer Price Index (CPI)
Differentiate among the Consumer Price Index (CPI), the Producer Price Index (PPI), the International Price Index, the Employment Cost Index, and the GDP deflator.