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money in the past.? Nominal interest rate ( R,名目利率 ) : the interest rate usually reported. ? It is the interest rate that a bank pays.? Real interest rate ( r,實質(zhì)利率 ) : nominal interest rate corrected for the effects of inflation.Copyright169。2023 SouthWesternDollar Figures from Different Times? To convert (inflate) Ruth’s wages in 1931 to dollars in 2023:Copyright169。2023 SouthWesternOther Price Index? The index for different regions/sectors within the country.? The Producer Price Index(生產(chǎn)者物價指數(shù)) , which measures the cost of a basket of goods and services bought by firms rather than consumers. Copyright169。2023 SouthWesternTaiwan: 2 measures of inflationCopyright169。2023 SouthWesternCh23: The GDP Deflator? The GDP deflator is calculated as follows:Copyright169。2023 SouthWesternTable Calculating CPI Inflation Rate: An ExampleCopyright169。2023 SouthWesternInflation Rate? The Inflation Rate( π): 通貨膨脹率=物價上漲率? When π0: deflation (通貨緊縮 )Copyright169。2023 SouthWesternFYI: What Is in the CPI’s Basket?17%Transportation15%Food and beveragesMedical care6%Recreation6%Apparel4%Other goodsand services4%42%Housing6%Education and municationCopyright169。 2023 Thomson SouthWesternCopyright169。Copyright169。20