Price Level & inflation
  Definition of the Consumer Price Index and
the GDP deflator
Calculation of price index...
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Economics
Price Level & inflation
  Definition of the Consumer Price Index andthe GDP deflator
Calculation of price index (e.g., CPI, GDPdeflator)
Calculation of inflation (Note: inflation is the rate ofchange in a price index from one year to another)
Limitation of the CPI (e.g., commodity substitutionbias, quality bias, new goods bias, outlet substitutionbias)
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CPI or consumer price index is a price index which calculates changes in price level of an average market basket of goods consumed by a consumer GDP deflator measures price changes of all new domestically
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