Ch 13.2 #1-3
1. Inflation is a general increase in prices. Purchasing power is the ability to purchase goods and services. As inflation rises, people's purchasing power is weakened.
2. The purpose of Consumer Price Index is a price index determined by measuring the price of a standard group of goods meant to represent the "market basket" of a typical urban consumer. with this information, consumers, businesses, and the govt. can compare prices this month with prices of a different time period.
3. Cost-push inflation causes the wage-price spiral. Ch 13.3 #9-14
9. Three effects of Inflation are eroding purchasing power(a dollar won't buy the same goods it would back en la dia), erodes income(people who aren't paid on wages lose out on the deal because they don't have a set wage to go up), and interest rates(if you have a savings account at 7% interest, and inflation goes up 5%, you only are getting 2% interest).
10. The Consumer Price Index plays the roll of being a presentation for govt., businesses, and people, to know, and keep track of inflation/there money's value.
11. The govt. combats poverty by spending billions of dollars on programs on cash assistance, education, medical benefits, and non-cash benefits such as food stamps.
12. Inflation is caused by economies having "too much" money, when demand for goods exceeds the ability to output said sought after goods, and when producers raise prices to keep up with higher prices that they have to pay. I don't know how to tell you these are different other than giving a brief description of what they really are...which I already did.
13. The unemployment rate is measured with the following formula: number of unemployed people divided by the number of people in the civilian labor force, multiplied by 100.
14. The groups most affected by poverty are minorities and women. This is caused by racial and Gender discrimination in the working world. These groups, in general, are paid less then whites and men. The poverty groups in america are made up by 28% of female headed households, 24.3% of black households, and 22.5% of households headed by those of hispanic decent.
1. Inflation is a general increase in prices. Purchasing power is the ability to purchase goods and services. As inflation rises, people's purchasing power is weakened.
2. The purpose of Consumer Price Index is a price index determined by measuring the price of a standard group of goods meant to represent the "market basket" of a typical urban consumer. with this information, consumers, businesses, and the govt. can compare prices this month with prices of a different time period.
3. Cost-push inflation causes the wage-price spiral.
Ch 13.3 #9-14
9. Three effects of Inflation are eroding purchasing power(a dollar won't buy the same goods it would back en la dia), erodes income(people who aren't paid on wages lose out on the deal because they don't have a set wage to go up), and interest rates(if you have a savings account at 7% interest, and inflation goes up 5%, you only are getting 2% interest).
10. The Consumer Price Index plays the roll of being a presentation for govt., businesses, and people, to know, and keep track of inflation/there money's value.
11. The govt. combats poverty by spending billions of dollars on programs on cash assistance, education, medical benefits, and non-cash benefits such as food stamps.
12. Inflation is caused by economies having "too much" money, when demand for goods exceeds the ability to output said sought after goods, and when producers raise prices to keep up with higher prices that they have to pay. I don't know how to tell you these are different other than giving a brief description of what they really are...which I already did.
13. The unemployment rate is measured with the following formula: number of unemployed people divided by the number of people in the civilian labor force, multiplied by 100.
14. The groups most affected by poverty are minorities and women. This is caused by racial and Gender discrimination in the working world. These groups, in general, are paid less then whites and men. The poverty groups in america are made up by 28% of female headed households, 24.3% of black households, and 22.5% of households headed by those of hispanic decent.