AP Economics – 2/08/19

I.  Bellwork

• Page 144 MC 1-5
• Page 145 FRQ #2 A-C

II.  Objectives:

• Explain what a price index is and how it is calculated
• Calculate the inflation rate using the values of a price index
• Describe the importance of the consumer price index and other price indexes

III. The Measurements and Calculations of Inflation Pgs. 146-151

A.  Price Indices and the Aggregate Price Level

1. Market Baskets and Price Indices
2. The Consumer Price Index

• CPI Practice
• Inflation and Price indexes

3. Other Price Measures

• Producer Price Index (PPI)
• GDP deflator

IV.  Test on Monday

• Section 3 (Modules 10-15) Test on Monday
• 40-60 Questions & FRQ
• Know how to compute GDP (3 ways) , Compute GDP deflator, and CPI

V.  Classwork

• 15.2 & 15.3  (15.2 is due today)
  • You will need to look over Cliffords 2.3 PPT to do 15.3 (it’s in the folder on iLearn)

VI.  Homework (review) – Due Monday

• Pages 155-157 MC 25 & FRQ #1

AP Economics