Inflation and CPI Practice- Macro 2.8

The video tutorial on ACDC Econ explains inflation and the Consumer Price Index (CPI). It covers how inflation is measured through the inflation rate and index numbers, using the CPI as a key example. The tutorial provides detailed steps on calculating CPI and inflation rates, emphasizing the importance of understanding base years and percent changes. Viewers are encouraged to practice these calculations to solidify their understanding.

What does it mean if the CPI is less than 100?

What is the impact of a CPI increase from 100 to 125 on inflation rate?

How do you calculate the inflation rate between two years using CPI?

Explain the relationship between CPI and the cost of living.