ECON 203- Midterm Exam Guide - Comprehensive Notes for the exam ( 12 pages long!)
Document Summary
An increase in the general level of prices. Cpispecific year = (cost of market basket in specific year)/(cost of market basket in base year) x 100. By measuring the percentage change in the cpi from one time period to the next. % cpi = (newer cpi - older cpi)/older cpi x 100. Suppose you own pizza restaurant, and it costs you a total of to make that pizza. If you want to make a profit of , then you have to sell it for. If the cost of making pizza rises to , then you have to start selling pizza for to make the same profit. Inflation resulting from an increase in the cost of production. If cost of magnesium increases, then the price of surface pros also increase. Last week of class will be review: no need to attend if not taking the final exam.
