INFLATIONCLASS - Prices, SR Inflation & Phillips Curve...

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1 1 Inflation – deflation explained 40 Cpi-u 12 mos 3.8% Core 2% 2 Key Points b CPI – interpretation, calculation, problems b GDP Deflator and Chain weighted indexes b Harm of Inflation-anticipated, unanticipated s Inefficient use of money, distortion of price system, redistribution lenders/borrowers, uncertainty s Harm of Deflation, Hyperinflation b Inflation Causes in the Short-Run – Keynesian s Demand-pull, cost push s Wage- price Spirals s Wage Price Guidelines b Deflation b Short-run Phillips Curve 3 In the News?
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4 Course Issues s ONLINE MIDTERM Wednesday 10/26 4pm through Friday 10/28 8pm – 1 hour window weeks 1-8 ; 50 multiple choice questions s HW 8 – Friday b Answers to 6, 7 and corrections s Clicker points s Emails? Study Suggestions s review the Outline Of Key Points To Date in assignment 8 s look up any of the topics you don’t understand s what determines output, unemployment? Aggregate Supply and Demand s what factors can shift aggregate demand? Exogenous changes in C, I, G, NX; also fiscal and monetary policy actions s what causes business cycles? Demand and/or Supply shifts/shocks b look at the textbooks’ end of chapter summaries b look at the big questions and notes in each assignment b review the ‘answered’ hw I posted b review the general hw questions you got wrong b ASK YOURSELF QUESTIONS and TEST YOURSELF looking up material that you get wrong. 5 6 Consumer Price Index– BLS 8/11 s The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in August on a seasonally adjusted basis s broad-based, with continuing increases in the indexes for gasoline, food, shelter, and apparel. s Over the last 12 months, the all items index increased 3.8 percent before seasonal adjustment. s
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This note was uploaded on 02/05/2012 for the course 220 103 taught by Professor Sheflin during the Fall '09 term at Rutgers.

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INFLATIONCLASS - Prices, SR Inflation & Phillips Curve...

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