Enhance Your Learning with Economics - Consumer Price Index (CPI) Flash Cards for quick understanding
A measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
A representative selection of goods and services used to calculate the Consumer Price Index (CPI).
A reference period against which the prices of the market basket in other periods are compared to calculate the Consumer Price Index (CPI).
The process of assigning importance or weight to different components of the market basket based on their relative significance in consumer spending.
A sustained increase in the general level of prices for goods and services in an economy over a period of time.
A measure of the average price level of a given group of goods and services relative to a base period.
Consumer Price Index for All Urban Consumers, which represents the spending patterns of urban households in the United States.
Consumer Price Index for Urban Wage Earners and Clerical Workers, which represents the spending patterns of households that derive more than half of their income from clerical or wage occupations.
Chained Consumer Price Index for All Urban Consumers, which accounts for changes in consumer behavior and substitution of goods and services over time.
A measure of inflation that excludes volatile food and energy prices to provide a more stable indicator of underlying inflation trends.
The amount of money needed to sustain a certain level of living, including expenses for housing, food, transportation, healthcare, and other goods and services.
Changes made to wages or salaries to account for changes in the cost of living as measured by the Consumer Price Index (CPI).
The actions taken by a central bank to manage the money supply and interest rates to influence economic activity and control inflation.
The examination of economic data and indicators, including the Consumer Price Index (CPI), to understand and evaluate the performance and trends of an economy.
The comparison of Consumer Price Index (CPI) data between different countries to assess differences in price levels and inflation rates.
A price index formula that uses fixed weights based on the consumption patterns of a base period to calculate the Consumer Price Index (CPI).
A price index formula that uses current weights based on the consumption patterns of the current period to calculate the Consumer Price Index (CPI).
A price index formula that uses geometric mean of the Laspeyres and Paasche indexes to calculate the Consumer Price Index (CPI).
The tendency of consumers to substitute goods and services with lower prices for those with higher prices, which is not fully captured by the fixed market basket of the Consumer Price Index (CPI).
The improvement in the quality of goods and services over time, which is not fully accounted for in the Consumer Price Index (CPI) and may result in an overestimation of inflation.
The introduction of new goods and services that are not immediately included in the market basket of the Consumer Price Index (CPI), leading to an underestimation of inflation.
The tendency of consumers to shift their purchases from traditional retail outlets to discount stores and online platforms, which may not be fully reflected in the Consumer Price Index (CPI).
A method used to adjust the prices of goods and services in the Consumer Price Index (CPI) based on changes in their quality and features.
A price index that assigns different weights to different components of the market basket based on their relative importance in consumer spending.
The year chosen as a reference point for calculating the Consumer Price Index (CPI), with its price level set to 100.
The percentage change in the Consumer Price Index (CPI) from one period to another, indicating the rate of inflation.
A sustained decrease in the general level of prices for goods and services in an economy over a period of time.
An extremely high and typically accelerating inflation, often leading to the rapid devaluation of a country's currency and severe economic instability.
A situation characterized by high inflation, high unemployment, and stagnant economic growth, which is considered a challenging economic condition.
Inflation caused by an increase in aggregate demand, typically resulting from increased consumer spending, government spending, or investment.
Inflation caused by an increase in production costs, such as wages or raw material prices, leading to higher prices for goods and services.
A measure of the Consumer Price Index (CPI) that excludes food and energy prices, which are considered more volatile and subject to short-term fluctuations.
The process of removing the seasonal patterns and fluctuations from economic data, such as the Consumer Price Index (CPI), to reveal underlying trends and changes.
An average calculated by assigning different weights to different components based on their relative importance or significance.
The face value or stated value of a variable, such as prices or wages, without adjusting for inflation or changes in purchasing power.
The value of a variable, such as prices or wages, adjusted for inflation or changes in purchasing power, representing its purchasing power in constant dollars.
The ability of money or income to buy goods and services, influenced by changes in prices and inflation.
The anticipated rate of inflation in the future, which can influence consumer behavior, investment decisions, and monetary policy.
A monetary policy framework in which a central bank sets an explicit target for the inflation rate and uses monetary tools to achieve and maintain that target.
A decrease in the rate of inflation, resulting in a slower increase in the general level of prices for goods and services.
A low and gradual increase in the general level of prices for goods and services over time, typically considered a manageable inflation rate.
A high and accelerating inflation, often leading to a rapid erosion of purchasing power and economic instability.
A moderate and steady increase in the general level of prices for goods and services, typically considered a manageable inflation rate.
The buying and selling of government securities by a central bank to control the money supply, interest rates, and inflation.
A monetary policy characterized by higher interest rates, reduced money supply, and stricter lending conditions to control inflation and stabilize the economy.
A monetary policy characterized by lower interest rates, increased money supply, and easier lending conditions to stimulate economic growth and combat deflation.
Inflation caused by an increase in aggregate demand, typically resulting from increased consumer spending, government spending, or investment.
Inflation caused by a decrease in aggregate supply, typically resulting from higher production costs, reduced availability of resources, or supply disruptions.