If you're seeing this message, it means we're having trouble loading external resources for Khan Academy.

If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked.

Inflation - measuring the cost of living
Inflation and deflation. CPI-U. Real and nominal return. Phillips Curve.
All content in “Inflation - measuring the cost of living”

Measuring cost of living --inflation and the consumer price index

We might generally sense that our cost of living is going up (inflation), but how can we measure it? This tutorial shows how it is done in the United States with the consumer price index (CPI).

Real and nominal return

We think we're getting a certain return on our investments, but can we put it in terms of real purchasing power since the value of money is constantly changing? The answer is yes and this tutorial shows you how.

Deflation

Prices don't always go up. Sometimes they go down (we call this deflation). This tutorial explains how this happens.

Inflationary and deflationary scenarios

This tutorial walks through various scenarios of moderate and extreme price changes. Very good way to understand how activity in the economy may impact price (and vice versa).

The Phillips curve: Inflation and unemployment

Economists have notices a correlation between unemployment and correlation (you may wan to guess what type of correlation). On some level, this tutorial is common sense, but it will give you fancy labels for this relation so that you can sound fancy at fancy parties.