干货满满｜ Alevel经济学问答题：通货膨胀

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　　Inflation

　　Inflation is a persistent increase in the average price level in the economy.

　　measuring of inflation

　　A

Inflation are typically measured by calculating a consumer price index (CPI), which measures the changes in prices over time of a representative basket of goods and services consumed by the average household. Some goods & services are given a larger weighting in the measurement of CPI because they take up a larger share of consumers’ income, e.g. housing & food.

　　B

Problems associated with the measurement of inflation

CPI is based on the purchasing preferences of a “typical” household, but this may not be applicable to all people.

　　 　1) There may be errors in the collection of data that limit the accuracy of the results. e.g. only the prices of selected outlets will be used.

2) There are changes in consumption patterns over time, which cannot always be taken into account.

　　3) The quality and types of goods and services change over time. e.g. the price of a newer model of computer will be higher & feed into a higher rate of inflation.

　　4) Changes in producer prices and commodity prices are excluded in the calculation of CPI. (Producer price index measures changes in the prices of factors of production and is useful in predicting future inflation.)

5) Some one-off events such as seasonal variations & oil price shocks will lead to unusual movements in the inflation rate and can be misleading. (A core rate of inflation that excludes food & energy prices should be considered.)

　　6) It is hard to make international comparisons because countries measure their inflation in different ways & include different components.

　　来道真题解解腻

　　相关A-level 真题：

　　1. (November, 2010v1)

　　            (b) Discuss the methods and problems involved in constructing an accurate measure of the rate of inflation.                                                               [12]

　　Solution:

　　1) 答题思路：先写measure the rate of inflation 的方法，再写constructing the method 时遇到的问题。

　　2）得分点：

　　Understanding of the means of measurement of inflation                                            

　　4 marks

　　Discussion of the method of construction

　　4 marks

　　Discussion of problems of stages and final outcome                                              

　　4 marks

　　3) 真题答案：

　　Inflation is measured by a weighted price index. This may be the consumer price index, the retail price index or a variation of these Each of the stages of construction has problems. Choosing the base year needs a year with normal conditions, The selection of a basket of goods needs to reflect average consumption patterns and allow for the introduction of new products. Weighting the individual contents has to reflect up to date spending patterns. Sampling sales outlets must cover a wide enough range 01 types and locations. Even if these are achieved the average picture may not accurately reflect the position of groups e.g. pensioners it may not reflect changes in quality of goods; it may lag behind events and it may be based on inaccurate statistics and invalid sampling. International conventions set standards for participating countries.

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