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9 Cards in this Set
- Front
- Back
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Consumer Price Index (CPI) |
a measure of the overall cost of the goods and services bought by a typical consumer. |
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Calculating CPI |
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Inflation Rate |
The percentage change in the price index from the preceding period. |
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Core CPI |
A measure of the overall cost of consumer goods and services excluding food and energy. |
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Producer Price Index (PPI) |
A measure of the cost of a basket of goods and services bought by firms. |
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Correcting for Inflation Equation |
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Indexation |
The automatic correction by law or contract of a dollar amount for the effects of inflation. |
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Nominal Interest Rate |
The interest rate as usually reported without a correction for the effects of inflation. |
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Real Interest Rate |
The interest rate corrected for the effects of inflation. |
