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PRINCIPLES OF MACROECONOMICS 2e

for AP Courses

Chapter 08 Inflation

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COLLEGE PHYSICS

Chapter # Chapter Title

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CH.8 OUTLINE

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Uang Besar di Zimbabwe

Uang kertas ini bernilai 100 miliar dolar Zimbabwe ketika dikeluarkan pada 2008. �Bahkan pernah ada 100 triliun dolar Zimbabwe. Tertulis $ 100,000,000,000,000 di atasnya. �Sayangnya, mereka hampir tidak berharga. �Pada satu titik, 621.984.228 dolar Zimbabwe = satu dolar AS. �Akhirnya, negara itu meninggalkan mata uangnya sendiri dan mengizinkan orang menggunakan mata uang asing untuk pembelian. (Kredit: modifikasi karya Samantha Marx/Flickr Creative Commons)

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8.1 Melacak Inflasi

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Angka Indeks

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8.2 How to Measure Changes in the

Cost of Living

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Pembagian Komponen CPI

Dari delapan kategori yang digunakan untuk menghasilkan Indeks Harga Konsumen, perumahan paling tinggi yaitu 42,7%. �Kategori tertinggi berikutnya, makanan dan minuman sebesar 15,3%, kurang dari setengah ukuran perumahan. �Barang dan jasa lainnya, serta pakaian jadi, adalah yang terendah sebesar 3,4% dan 3,3%. (Sumber: www.bls.gov/cpi)

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IHK dan Indeks Inflasi Inti

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Inflasi di Indonesia

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Inflasi di Indonesia

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Inflasi di Indonesia

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Inflasi di Indonesia

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Determinan Inflasi

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Inflasi di Indonesia

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Inflasi di Indonesia

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Inflasi di Indonesia

Inflation Targeting Framework = kerangka kerja kebijakan moneter, yang secara transparan dan konsisten, diarahkan untuk mencapai sasaran inflasi beberapa tahun ke depan dan secara eksplisit ditetapkan lalu diumumkan

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Practical Solutions for the Substitution

and the Quality/New Goods Biases

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Additional Price Indices

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8.3 How the U.S. and Other Countries Experience Inflation

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U.S. Price Level and Inflation Rates

The U.S. price level rose relatively little over the first half of the twentieth century. Afterwards, it gradually increases until about 1973, then increases more rapidly through the remainder of the 1970s and beyond, with periodic dips, until 2016, when it reached around 240.
In 1916, the graph starts out with inflation at almost 8%, jumps to about 17% in 1917, drops drastically to close to –11% in 1921, goes up and down periodically, with peaks in the 1940s and the 1970s, until settling to around 1.3% in 2016.

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Countries with Relatively Low Inflation

Rates, 1960–2016

This chart shows the annual percentage change in consumer prices compared with the previous year’s consumer prices in the United States, the United Kingdom, Japan, and Germany.

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Countries with Relatively High Inflation

Rates, 1980–2016

These charts show inflation rates in Brazil, China, and Russia.

Of these, Brazil and Russia experienced hyperinflation at some point between the mid-1980s and mid-1990s.
Though not as high, China and Nigeria also had high inflation rates in the mid-1990s. Even though their inflation rates have come down over the last two decades, several of these countries continue to see significant inflation rates. (Sources: http://research.stlouisfed.org/fred2/series/FPCPITOTLZGBRA; http://research.stlouisfed.org/fred2/series/CHNCPIALLMINMEI; http://research.stlouisfed.org/fred2/series/FPCPITOTLZGRUS)

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8.4 The Confusion Over Inflation

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Unintended Redistributions of Purchasing Power

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U.S. Minimum Wage and Inflation

After adjusting for inflation, the federal minimum wage dropped more than 30 percent from 1967 to 2010, even though the nominal figure climbed from $1.40 to $7.25 per hour.
Increases in the minimum wage between 2008 and 2010 kept the decline from being worse - as it would have been if the wage had remained the same as it did from 1997 through 2007. (Sources: http://www.dol.gov/whd/minwage/chart.htm; http://data.bls.gov/cgi-bin/surveymost?cu)

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Blurred Price Signals

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Problems of Long-Term Planning

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U.S. Inflation Rate and U.S. Labor

Productivity, 1961–2014

Over the last several decades in the United States, there have been times when rising inflation rates have been closely followed by lower productivity rates and lower inflation rates have corresponded to increasing productivity rates.
As the graph shows, however, this correlation does not always exist.

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8.5 Indexing and Its Limitations

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Indexing in Government Programs

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