How do we measure the shifting value of money over time?
Understanding inflation requires more than just watching price tags. This walkthrough explores the mechanics of price indices, teaching you how to calculate inflation using the CPI and adjust historical prices to reveal true long-run economic trends.
The video breaks down the fundamental methods used to track the change in prices for goods and services. You will learn how to use the Consumer Price Index (CPI) to calculate inflation and how to adjust prices over time to account for these shifts.
Beyond simple calculations, the lesson examines the drivers behind price volatility—specifically why certain goods or services increase in cost while others decrease. By analyzing these factors, you can better understand the broader economic forces that shape the cost of living.
Source: Day 4: Measuring Inflation and Long Run Trends | Money & Inflation Unit Plan Walkthrough
