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Inflation rate
the percentage change in the price index from the preceding period.
GDP deflator
measure of the overall level of prices in the economy.
Producer price index
a measure of the cost of a basket of goods and services bought by firms.
overall level of prices
The purpose of measuring the ________ in the economy is to allow us to compare dollar figures from different times.
Consumer price index (CPI)
a measure of the overall cost of the goods and services bought by a typical consumer.
Substitution bias
when the price change from one year to the next, changes disproportionately
Note
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