Principles of Macroeconomics :3

1. 24 Measuring the Cost of Living

11. Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example Copyright©2004 South-Western

12. Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example Copyright©2004 South-Western

13. Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example Copyright©2004 South-Western

14. Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example Copyright©2004 South-Western

15. Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example Copyright©2004 South-Western

17. FYI: What’s in the CPI’s Basket? Copyright©2004 South-Western 16% Food and beverages 17% Transportation Medical care 6% Recreation 6% Apparel 4% Other goods and services 4% 41% Housing 6% Education and communication

29. Figure 2 Two Measures of Inflation 1965 Percent per Year 15 10 5 0 1970 1975 1980 1985 1990 2000 1995 Copyright©2004 South-Western CPI GDP deflator

32. Table 2 The Most Popular Movies of All Times, Inflation Adjusted Copyright©2004 South-Western

37. Figure 3 Real and Nominal Interest Rates 1965 Interest Rates (percent per year) 15 10 5 0 – 5 1970 1975 1980 1985 1990 1995 2000 Copyright©2004 South-Western Real interest rate Nominal interest rate