Unemployment and Inflation Who Counts in Unemployment?

More Quick Review

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  What is an example of inflation? Explain
  
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  What is a price index is? How do you compute one?
  
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  How do you calculate inflation rates using price indices?
  
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  Using Consumer Price Index (CPI), how do you calculate U.S. inflation rates
  
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  What are the major shortcomings of the CPI as a measure of the cost of living?
  
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  Explain how the substitution bias and the quality improvement/new goods bias causes the CPI to overstate the cost of living
  
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  Contrast the CPI with other price indices, including the PPI and GDP Deflator
  

More More Quick Review

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  What are the ways inflation can blur the perception of supply and demand?
  
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  How can inflation cause redistributions of purchasing power
  
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  Explain the possible economic benefits of inflation