Monitoring Jobs and Inflation - The price level, inflation, and deflation
8 important questions on Monitoring Jobs and Inflation - The price level, inflation, and deflation
EN-CAInflation is a problem for many reasons, but the main one is that once it takes hold, it is unpredictable. Unpredictable inflation is a problem because it....
- Redistributes income and wealth
- Diverts resources from production
How do you construct RPI and CPI?
- Selecting the basket
- Conducting a monthly price survey
- Calculating the price index
2. Conducting a monthly price survey
Every month, ONS employees check 110.000 prices of more than 550 types of goods and services
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
For my 1st exam I got a C. Then, I started looking for ways to learn better and I came across Study Smart. Since then I have scored a A+, A, A- and another A. I highly recommend it to everyone who wants to hear it. I am so happy with it!!
I was struggling to finish all my first-year subjects for 3 years. Then I discovered Study Smart, which helped me to finish all of them within 3 months.
Because of StudySmart, things are going well in many ways. Before, I always had study stress and no time for anything. Now I feel calm and confident (because of the program). I used to score a B, now I usually score an A or A+.
Hey Chris, I really want to thank you very much for developing the platform, I usually got around C for my exams, now I scored an A+, an A and a A- !!
Since using Study Smart, my average has increased significantly. I even completed a statistics course with a A+ while I'm bad at statistics. I took on extra courses this year, because of Study Smart. Thanks so much!
Ever since I started studying with StudySmart I passed all my exams !!! No more re-sits!! At first, I was happy with a pass and now I only get good grades. Many thanks!
I aced all the courses I studied with Study Smart. For law, I first scored a D, and now an A! I’m 100% sure that I’ll pass all the courses I study with Study Smart.
I always thought I studied well. My grades were fine. I could never have imagined that applying these study skills would have such a huge and direct impact on my grades, my speed and the pleasure I have in learning.
For the first time, I finally feel totally confident about the way I learn. I have the perfect overview and make great progress in terms of speed and the grades I get. Thanks, Chris!
I immediately started to enjoy learning again, and my grades soared. All of a sudden, everything went better. I highly recommend Study Smart to all students..
Being able to create my materials online made the process of studying so much smoother and quicker. I no longer have to spend a huge amount of my time on creating my summaries.
At first, my notes were a mess. Now I use Study Smart to take my notes in a perfectly structured way. It helps me to save a lot of time and do other things I enjoy.
Students that study with Study Smart get better grades. The system applies all the learning methods in such a way that both well-performing students and students who struggle perform much better.
Hi Chris, I would like to thank you very much. Last year I scored C on a course, and this year I got an A+ thanks to your method! Thank you very much!
The largest effect is that my child is more enthusiastic about school! Every parent wants their children to be happy at school, Study Smart made it happen.
In high school, I failed several exams, and that has really changed now. I actually needed this tool very much back then. Since I started studying with StudySmart, I haven't had any D's. My average score is now an A and those are results I would have never had in the past
With my old method, I passed only 3 out of 8 courses. Since I started taking my notes digitally in Study Smart, I have passed all my courses on the first try. For me, StudySmart takes away the stress of wondering if I will pass or not.
Thanks to StudySmart, I passed all my exams, and with better grades than before! On top of that, I have mastered a very good study method now, which I am confident will help me earn my degree.
3. Calculating the price index (contains 3 steps)
1. Find the costs of the basket at he based-period prices
(Multiply the quantity of the basket by the base-period price)
2. Find te cost of the bakset at the current-period prices
(Multiply the quantities of the basket by their 2011 price)
3. Calculate the index for the base period and the current period
(RPI=Cost of the basket at current period prices / Cost of basket at base period prices) x 100)
The main sources of bias in a price index are
- New goods bias
- Quality change bias
- Substitution bias
2. Quality change bias
EN-USQuality improvements occur every year. Part of the rise in the price is payment for improved quality and is not inflation.
EN-US(The price index counts all the price rise as inflation.)
Some consequences of the bias in the RPI and CPI
- Distorts private contracts
- Increase government outlays
- Might lead to inappropriate monetary policy decisions by the bank of England.
An alternative price index:
The GDP deflator: an index of the prices of all items in the GDP.
GDP deflator = (Nominal GDP / Real GDP) x 100
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
