객관식
In macroeconomics, how is the GDP deflator (a price index for all domestically produced final goods and services) calculated for a given year?
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11. Unemployment and Inflation
Using CPI to Adjust for Inflation
객관식
How do you use CPI to adjust for inflation?
A
Divide the nominal amount by the percentage change in CPI (inflation rate) to obtain the inflation-adjusted value.
B
Multiply the nominal amount by (CPI_target / CPI_original) to express the amount in target-year dollars.
C
Multiply the nominal amount by (CPI_original / CPI_target) to express the amount in target-year dollars.
D
Subtract CPI_original from CPI_target and add the difference to the nominal amount to adjust for inflation.
검증된 단계별 안내1
Understand that the Consumer Price Index (CPI) measures the average change over time in the prices paid by consumers for a market basket of goods and services, and it is commonly used to adjust nominal values for inflation.
Identify the nominal amount you want to adjust and the two CPI values: the CPI for the original year (CPI_original) and the CPI for the target year (CPI_target).
Use the formula to convert the nominal amount from the original year to the target year's dollars: multiply the nominal amount by the ratio of the target year's CPI to the original year's CPI, expressed as \(\text{Adjusted Amount} = \text{Nominal Amount} \times \frac{\text{CPI\_target}}{\text{CPI\_original}}\).
This formula works because it scales the nominal amount by how much prices have changed between the two years, effectively removing the effect of inflation.
Avoid incorrect methods such as dividing by the inflation rate or simply subtracting CPI values, as these do not correctly account for the proportional change in price levels.
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