# 8.1 Tracking inflation  (Page 3/16)

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## Index numbers

The numerical results of a calculation based on a basket of goods can get a little messy. The simplified example in [link] has only three goods and the prices are in even dollars, not numbers like 79 cents or $124.99. If the list of products was much longer, and more realistic prices were used, the total quantity spent over a year might be some messy-looking number like$17,147.51 or $27,654.92. To simplify the task of interpreting the price levels for more realistic and complex baskets of goods, the price level in each period is typically reported as an index number , rather than as the dollar amount for buying the basket of goods. Price indices are created to calculate an overall average change in relative prices over time. To convert the money spent on the basket to an index number, economists arbitrarily choose one year to be the base year , or starting point from which we measure changes in prices. The base year, by definition, has an index number equal to 100. This sounds complicated, but it is really a simple math trick. In the example above, say that time period 3 is chosen as the base year. Since the total amount of spending in that year is$107, we divide that amount by itself ($107) and multiply by 100. Mathematically, that is equivalent to dividing$107 by 100, or $1.07. Doing either will give us an index in the base year of 100. Again, this is because the index number in the base year always has to have a value of 100. Then, to figure out the values of the index number for the other years, we divide the dollar amounts for the other years by 1.07 as well. Note also that the dollar signs cancel out so that index numbers have no units. Calculations for the other values of the index number, based on the example presented in [link] are shown in [link] . Because the index numbers are calculated so that they are in exactly the same proportion as the total dollar cost of purchasing the basket of goods, the inflation rate can be calculated based on the index numbers, using the percentage change formula. So, the inflation rate from period 1 to period 2 would be This is the same answer that was derived when measuring inflation based on the dollar cost of the basket of goods for the same time period. Calculating index numbers when period 3 is the base year Total Spending Index Number Inflation Rate Since Previous Period Period 1$100
Period 2 $106.50 Period 3$107
Period 4 $117.50 If the inflation rate is the same whether it is based on dollar values or index numbers, then why bother with the index numbers? The advantage is that indexing allows easier eyeballing of the inflation numbers. If you glance at two index numbers like 107 and 110, you know automatically that the rate of inflation between the two years is about, but not quite exactly equal to, 3%. By contrast, imagine that the price levels were expressed in absolute dollars of a large basket of goods, so that when you looked at the data, the numbers were$19,493.62 and \$20,009.32. Most people find it difficult to eyeball those kinds of numbers and say that it is a change of about 3%. However, the two numbers expressed in absolute dollars are exactly in the same proportion of 107 to 110 as the previous example. If you’re wondering why simple subtraction of the index numbers wouldn’t work, read the following Clear It Up feature.

#### Questions & Answers

Morning everyone. How can you help a person who can't stop musterbating?
Ntando Reply
find a different activity to divert the need to masturbate
vincent
masturbation is a need u cant stop it
Abhilash
Try positive punishment then transition to negative punishment
Atone
It probably has something to do with the environment one grew up in and their genetics that caused their puberty to have this psychological effect on them.
Atone
trying to keep yourself busy with stuffs you love doing the most.like reading or listening to music or sports
Naomi
addiction and attachment issues do go hand in hand
vincent
stop watching pornography if you do; it leads you to fantasizing via masturbation. If you are a Christian, try indulging is spirituality (music and prayrer) before your bed time.
Matovu
don't stop watching anything but instead pay attention to yourself and be conscious enough of what happens inside your brain or how the thought process goes that leads you to masturbating
Priyank
Hello everyone have a nice day
Mary
Hello
Georgescu
internal for example a times when when I watched a pornography movie I end up thinking about it a lot so what I used to stop it is to create something in my mind that can ever exist in real life. I can create a story for about a week in my mind just to forget about it and it actually helps me
Mary
@mary charm story construction is helpful but then it open up on doorways for a new problem or addiction per say since it gives boost to the overexaggeration of reality which is not right, instead try to jot down what do you feel, be it digitised or normal writing. painting it also helps.
Priyank
she**
vincent
hi how to join conversation?
Jason Reply
i don't know
Azeneth
How can you say that your bestfriend is true to you?
Azeneth Reply
why is my mom so mean?
Krista Reply
Hello Krista! Idk what made you think that ur mom is mean, but trust me, that's just not true. She really loves u and cares for u, but it's just that her way of caring is different than others. Ik it sounds mean, but deep inside her heart, she loves u a lot, just like all moms love their children.
Drazy
perhaps, but if you could elaborate on what exactly she does that is demeaning, because sometimes some lessons that are best learned are through a tough and disciplined manner, most likely she really loves you and wants you to learn the lesson once, so you won't have to find it out the hard way
Eldar
I have been assigned to an emotional disturbed student. She seemed fit first but you notice she interrupts or teases other students.would you work with this student an class to improve the situation?
Saleem
Hello ! I think that she's kind of person that shows her bad side before the good. In other words "if you gonna love me ,first you should accept my bad side" These kind of person have the purest love ,once you get through their bad side , it demand some patience and emotional control but , It worth.
aziz
difficult question...ask from your father
Farhat
We can't know for sure. Whatever decisions your mom makes at the time are her best choices to fulfill her needs, in a way, so her meanness probably in relation to her own prioritization of needs, upbringing, temperament.
frootloop
Also, it's likely part of who you are, as well. By growing up with her, you're likely more vulnerable to her attacks, and they trigger you easily. These are both things that could potentially change, but not without a lot of work
frootloop
Hope this helped! I'm no therapist or psychologist, so take what I say with a grain of salt
frootloop
Rge only one onbthis planet have the ability to be with u whatever happens
Mohammed
What is the relationship between physical development and motor development
philip Reply
what is memory
Devyani Reply
the faculty by which the mind stores and remembers information. "I've a great memory for faces" something remembered from the past; a recollection.
Amber
what is the difference between Counsellor and Psychologist?
KADIR
One talks you through your problem helping you solve them on your own (and vent out). The other writes a prescription for you and diagnoses the medical issue lying beneath (eg depression, anxiety)
Vasu
A psychologist has been trained to look at behavioural aspect of mental problems rather than look at biomechanical perspectives. He is more likely to ask his patient about his past and his present behavior, his feelings and his problems to arrive at the root cause.......Read more
Miraj
psychologists have a better understanding and awareness of behavioural reasons of mental problems than others.
Miraj
Instead of the behavioural approach adopted by psychologists, a counsellor tries to encourage the patient to direct the treatment session. He creates an environment where the patient is able to clearly see through his own problems and the reasons underlying these problems........Read more
Miraj
Thus, without relying anybody else, the patient is able to overcome his problems. In a broader sense, both psychologists and counselors both are specialists who try to solve mental problems of people through adopting different approaches.
Miraj
@Kadir shuaib, I hope you understand l
Miraj
Thanks to bits@Miraj Gillani But I've told that Counselling is applied psychology and counseling only effective when theory is applicable.
KADIR
@kadir👍
Miraj
A memory is a faculty which permits human to situate his actions and his state in the times and space.
Sinaly
@vasu a psychologist can't give you a drug as a prescription, that's the job of a psychiatrist
Argoncor
hi I have dealing with a lady who is severely depressed .. she gets suicidal attacks even at the thought of her mother in law . I am working on realeasing her stress .. any other suggestions?
Sriya
hi sriya.. try engazing her in some activity...like cooking,or any u like...make ppl appriciate her effort...plan such that one or other alawys keep appreciating her efforts...that will bring value to her own existence...but it will definetly take some time so u must have patience. tke cre champion.
ARJUN
ARJUN great idea.
Cindy
Hey Sriya! U can take her 2 sum place where she can inhale some fresh air&feel good.&when she gets suicidal attacks 'bout her mom-in-law,u can try calming her down by saying that her mom-in-law wud also appreciate her works&she wud b sad if she knew that her daughter in law is unhappy.Gud luck,girl!
Drazy
Idk about Drazy's comment, something that worked for me was to defy irrational thought patterns and watch out for them to defuse your own suicidal thoughts. Maybe find a focus to life completely independent of the MIL
frootloop
Sriya she needs to do something that makes her happy. I used to spend time with a depressed lady I ask her if anything helped her. when she had anxiety attacks she said music. Whenever I could feel her starting to have an attack I'd hand her head phones along with her favorite music.
Cindy
I asked her she said her husband she has anchored her entire happiness with her husband. she can't even move without him
Sriya
I apologize Sriya I just joined the conversation, I don't know about her husband ; therefore I am not able to give suggestions.
Cindy
@sriya you need to give her an insight about her own individuality so she could seperate herself mentally from her husband and see for herself what she is and where she is! you need to make her understand this that her husband and she herself are two both seperate individuals, may be meditation....
Priyank
...can give her a new tangent to think and pursue reality as it, I use meditation alot on my clients to give them a fresh perception of reality...
Priyank
Hi
ABUBAKAR
Excellent point Priyank
Cindy
thank you everyone I think I know what to do ..
Sriya
Maybe there's a dependency on the husband, and has a bearing on the lady's relationship with her MIL? Like, her MIL is threatening to her
frootloop
Exactly frootloop. Similar to changing a negative thought to a positive thought.
Cindy
What is the deference between Counseling and Psychology?
ABUBAKAR
I think Cindy and Arjun's answers are great. I'm no specialist, but having something private that she's not at war with and can appreciate (activity, hobby, music, etc) could definitely be helpful
frootloop
hey mates..we r part of d universe and essence of universe is continuous activity..even stagnant water fouls..depresn over d top take self value...hence engazin in some purpose oriented work(activity )along with fellows appriciation(value) is two pronged strategy. but it all takes time.u need to b
ARJUN
smart n patience..as depressions dosnt have a face..!!! love u all
ARJUN
always make her to feel important
Mary
@First know the root cause of the issues she's been traumatized with..talk to her in her own language without any Prejudice let her confide in you then you can get the solutions...as the primary reason for depression is being lonely around your own people and house..an open ear to listen to ur silly
harvey
... stories piled up urges, desires a warm hug that human touch we loose over time... saying is easy but living in it is insane..we all need someone to dump our day with..make her realize the consequences if she does hurt herself or others..as u cannot be with them 24/7 so try instilling the...
harvey
...SELF ESTEEM AND BELIEF which she lost over time to her own people..ask her to do some activities which will earn money online and are fun while doing so...keep herself busy not sit and overthink on things!
harvey
importance of social psychology in the domain of education
solang Reply
Buddhist perspective on motivation..
Velda Reply
what is empirical observations
Denzel Reply
Empirical observation is a type of observation which is based on experiment not on theories. And this observation is not supported by scientific poof.
Miraj
why we do dreams? please tell me
Saleem
the thoughts which we stop thinking suddenly during day. they try to get out of our unconscious mind and they make a story which we term as dreams.
vritee
thank you
Saleem
family members very good morning beautiful lady and family and my family and one that works
holyghostChristine
pls what's sociology of education
solang
The sociology of education is the study of how public institutions and individual experiences affect education and its outcomes. It is mostly concerned with the public schooling systems of modern industrial societies, including the expansion of higher, further, adult, and continuing education.
Amber
Can someone please elaborate more of the unconscious, preconscious and conscious level?
Mary Reply
family members very good and the other side working today right after school today
holyghostChristine
@holyghost christine chutiya ho ka be?
Priyank
hahahaha😂😂
Amber
sounds like kanpuriya
Amber
delhi se hoon behnchxxd...
Priyank
have you people downloaded this app to discuss this things
Abhilash
**these
Priyank
**? (missing question mark)
Priyank
@abhilash...
Priyank
mm
Abhilash
priyank.apko aise slang to use ni karna chahiye
tapaswini
hahahaha😄
Miraj
@priyank u understood my point,that is enough bro.
Abhilash
well if it's for you...
Priyank
@tapaswini that person with the name holyghost christine made me do it, i didn't wanted to, I controlled myself alot but then it just broke free since this person is posting gibberish all over the other posts as well, posting stuff that doesn't even has a meaning or relevance to the question asked.
Priyank
hi
pallavi
hello @pallavi priya.
Priyank
hi
pallavi
ok.that's fine.that person is irritating you .that doesn't mean you will say those slangs .if you are studying psychology.you should have the controlling capacity to avoid these silly things .you should not react like that
tapaswini
@ priyank thakur how can I join in the discussion ?
pallavi
guys can u help me wid Buddhist perspective of motivation..
Velda
@tapaswini with all due respect to all the facts that you're putting up, since I'm studying psychology and I guess you're doing the same as well, I guess we can then both accept the fact that being a human means a flood of emotions and swings og feelings most of the times, I am in no way overlooking
Priyank
.....the fact that I should've contended myself but since i also have emotions it's not always easy to contain them, being a lady of your content you must be pretty aware of how things blow up in our own mind sometimes and then how agitation takes over the contentment that we have..
Priyank
@pallavi priya you have already joined in....ask or say that you want to..
Priyank
fine ......
tapaswini
okay
pallavi
is there any other questions
pallavi
Guys since someone talked about outburst of the emotions I also had the same thing with my teacher today in the class
Jobin
I had to get angry
Jobin
guys I'm not a student of psychology but I like to study it
pallavi
guys outburst of emotions is a natural thing.. every individual has their outbursts.. we experience different situations in our daily life out of which some lead to the outbursts... but we should always take care of the fact that someone is getting hurt by our words or not..
manisha
the discussion is going in a different tangent altogether but I like the exposure here.
Priyank
well put @manisha
Priyank
the outburst at many times is not a conscious act. So the question of taking care of the choice of words gets out of the window!
Priyank
@priyank yeah I understand ur point but we should also apologize for for our unconscious behavior when our consciousness returns...
manisha
there's no use of an apology if the person whom you retaliated to, didn't even respond, since it's just a spam account and is here to spread crammy texts.
Priyank
@manisha while it comes to the real world there's no shame in accepting your own committed mistake and apologizing for the same...
Priyank
i just said in general what u should actually do... again after all it's my point of view nd every individual has their own different views..
manisha
Hello guys...
Sandeep
Hello Sandeep
Miraj
@manisha absolutely. but above this all it's been pleasure conversing with you.
Priyank
same here @priyank
manisha
hi Mary the conscious mind includes all the things we are aware of or can easily bring into awareness
Mary
what are reflexes
Lola Reply
a voluntary and instantaneous response
Romelto
involentary impulse actions
Philip
what is this?
Angie
Mind is a reflex organ, will react to everything, everyone you see! Some are impulsive, some are NOT!
harvey
you should study cat reflexes nothing beats them, Bruce lee always tried replicating them.
Priyank
an involuntary* and instantaneous response. apologies for the typo
Romelto
hey Romelto, your answer is good😃
Miraj
Harvey 👍
Miraj
Involuntary response, usually immutable within its circumstance is called reflexes. For example, sneezing, breathing, heart beating, etc.
Miraj
Philip👍
Miraj
Angie what are you talking about?
Miraj
hummm
Asad
Asad bro, aap kya keh rhay hain?😁
Miraj
hahaha kch ni
Asad
okay g, theek hay bro😍
Miraj
Asad bro aap kya study kr rhay hain, psychology may?
Miraj
na ma computer ma study kr rah hu mgr psychology parhna ka shoq ha
Asad
good, psychology is very interesting
Miraj
Mera bhi bsc may aik subject psychology hay abi next confirm nhi k kis field may Jana hay.
Miraj
how you can define learning in psychology? friends
Miraj
learning is defined as relatively permanent change in behavior as a result of experience
Aymen
exactly true!!! Aymen khan thanks👍
Miraj
we can also say that learning is a positive change in our character which remains throughout life.
Miraj
How to overcome stress?
Overcome Stress.. By not being Emotional about people, job and things...don't treat them as if it's life and death issue, treat them as normal as possible.. saying is easy typing some words of wisdom and empathy living is exactly opposite...so try meditation, start small.. u'll have control over
harvey
..mind then things may change according to you or u'll end up in stress and anxiety!
harvey
hi myself khadim Shad .I am student of psychology ....)🥀
Khadim
.what are you studying in psychology? @ Khadam
Miraj
Any body can help me ....what is the operational difination of LOVE ..?
Khadim
MA .in clinical psychology
Khadim
Which university offers M.A in clinical psychology? Please can you tell me the name of your university? I'm also interested to get admission in the same field.
Miraj
Karachi University pk
Khadim
thanks bro for telling me the name of your university😊
Miraj
khadim shad, Love is the driving force behind any and all motivation, it is the how and the why governing you to feel attracted to some thing, weather a field of research, a social environment, building an relationship etc..
Jarrod
I believe University of Pittsburgh offers MA in clinical psych....my daughter is a junior there and she is following the same path.
Kathy
Thank you so much Kathy Houck😃🌼🌹 Can you please tell me about admission process, fee structure and merit of this university, actually I have no any idea about this university? I'll be very thankful to you😊
Miraj
Pitt is a stellar research college and facility. Pittsburgh is also a highly regarded medical college, PCOM. I think the admission rate is 50%. I will check with my daughter about your other queries.
Kathy
@ Khadim shad, Love is the most beautiful feeling of the world. It is an attraction to something which seems you beautiful. Love is a complete thing. Love is the connection from soul to soul. Love is a positive thing, it changes your life, it motivates you to do something unique.😍
Miraj
I'll be wait of your further queries. Once again thank you so much😃
Miraj
yes; you can pursue an MA in clinical psych at Pitt
Kathy
@ Kathy Houck, okay I'll try to apply there. Thank you so much😊
Miraj
Good for you and good luck!
Kathy
A reflex is an involuntary action that occurs very quickly after its specific kind of stimulation. The reflex action takes place automatically without conscious decision of the brain. Reflex actions are inherited in our nervous system through evolutionary processes, for example, the eye-blinki
Marvelium
Marvelium👍
Miraj
I am a student and I wish to pursue psychology , I would like to know if I can be a clinival psychologist if I take humanities stream?
amrita Reply
if you want want to be clinical psychologist you should take clinical psychology
Aarti
I want to be a clinical psychologist, but I have less marks in graduation. Can anyone else give me some suggestion in this regard? please friends give me your opinion?
Miraj
hey Miraj graduation marks dose't matter there...post graduation marks is important you should hv 55% in your pg. am also preparing for clinical psychologist...
Aarti
I have done my masters in clinical psychology from IgNou can anyone guide me what should I do for PhD
Sriya
Sriya, There are 2 ways:- 1. Clear UGC-JRF exams and get enrolled. 2. Take the common entrance test for the university you are applying PhD, and if passed get enrolled. Many universities have already published PhD admission notification.
Professor
Becoming Clinical Psychologist:- >. Do your masters in Clinical Psychology and pass the RCI exam to get accreditation.
Professor
does the universities approve IgNou .. and my practicals are still due can I still apply ?
Sriya
Ignou admissions start in January and July.. you can once check its last date. I am also doing my masters in Psychology from ignou.
deen
@Amrita & Sriya Irrespective of your UG, you have do Masters in Applied Psychology (If Correspondence IGNOU is best)...then MPhil/ PHD compulsory in CLINICAL PSYCHOLOGY-ONLY IN RCI APPROVED COLLEAGUES TO GET LICENSE TO PRACTICE...If you think it's too much then After MASTERS do 1 year Diploma ....
harvey
...and can still get license from RCI. You have to get license for Clinical Psychologist and for Counselling, NONE! can practice right after UG
harvey
.. hope this helps
harvey
*Colleges
harvey
thank you soo much this does help alot .. I did search for RCI approved colleges but most of them ask for full time course masters is this a criteria?
Sriya
it's not masters Sriya it's MPhil or one year Diploma else u can be at home write exams and be DONE!
harvey
u need to get the terminology right
harvey
you need to get the terminology Right.. GRADUATION - UG then MASTERS - PG (2years) and then MASTERS IN PHILOSOPHY - MPhil
harvey
Mphil or 1 year Diploma for RCI Regd
harvey
is there a path way ?
mishali
can you suggest me colleges which offer MPhil one year diploma both distance and full time
Sriya
***google.com/url?sa=t&source=web&rct=j&url=***rehabcouncil.nic.in/writereaddata/recog_inst17.pdf&ved=2ahUKEwjc1au1hobgAhUQWX0KHbskCkIQFjAAegQIAhAB&usg=AOvVaw27snbO5-PS4hSV7lHQYKvV
harvey
In my country they take everyone dispute the marks... But your first year you will be improving your marks or results then second year will be your first year... If you get me!
Ntando
being born here as a woman you don't get years together to just study as u like...I don't know about your situation, as I am clinical psychologist did enough counseling on the same...so all I suggest is get yourself out as soon as possible with RCI Regd to practice then do PhD or whatever you want
harvey
...in life... sorry for the whole preaching!
harvey
GOOFLE...RCI APPROVED COLLEGES
harvey
*google
harvey
@ I didn't get your question..be specific!
harvey
@mishali*
harvey
..sry I couldn't get ur question right...Mphil u can do from IGNOU Distance and about 1 year Diploma, it's full time with CLINICALS
harvey
thank you
Sriya
ur welcome!
harvey
From Pakistan
Miraj
I'm student from Malaysia,1st year in Dgree Psychology Course
Smith
@ Smith Wesson, 👍
Miraj
what is psychology
Aidah Reply
. the scientific study of the human mind and its functions, especially those affecting behaviour in a given context.
Aarti
U can also say that we study mentality of a person if person behaviour is good or bad what are the reasons about its life... Is there is something in its past? Mostly now a days it is use ful for depression, anxiet etc
Iqra
exactly...iqra maqadas
Aarti
Scientific study of humans behaviour, their mood, thinking, mind, disorders of mind is called psychology. This field of science is very vast. It's all branches are interesting.
Miraj
@Aarti👍
Miraj
@Iqra👍
Miraj
hi is there anyone who can be my friend :(
fr
yes
Anis
yah
Magreth
family members very good morning beautiful lady and she said that
holyghostChristine
what is bilateral transfer of learning?
Ekta Reply
Bilateral transfer is an aspect of the transfer of learning and is the transfer of learning or performance from one side of the body after training to the other. So, for example, after training a task with the right hand there, is an improvement in left handed performance
Amber
so good
Khadim
which comes first emotion or thinking
hamed Reply
Emotions
Keerthi
true
james
either could come first. arguing for the supremacy of one over the other may not hold, ceteris paribus.
Oyetoro
Depends on which part of brain is dominated in individual.
Gaurav
thinking. it's a thought that provokes an emotion
Free
family members very good morning beautiful people who love and care My Next time for the first time CALL CARE years love year's
holyghostChristine
that's a great question
Tanya
i think that we recognise our emotions by thinking what makes thinking first
riadh
but you have to feel the emotions in order to think about what those emotions are! right?
Tanya
response to Free... but if the emotions are not there then there is nothing to think about
Tanya
it is a catch 22
Tanya
it depends on the condition response/stimuli
vincent
is the stimuli a classical or operant response as well.
vincent
"thinking" is way too broad a term here, its essentially a number of cognitive processes that starts with perception. Emotions can be invoked by perceiving objects, actions, people, smell ...ipso facto, emotions are a response to a perceived stimulas
Eric
emotions. We feel a certain ways than we fix how we respond; most of the time using thinking.
Daniel
I said catch 22..because your thoughts bring about emotions... yet your emotions bring about your thoughts
Tanya
Emotions can triggered by stimuli e.g when you see an old memorable pic. Which results in recalling the situation all over again. And sometimes because you were thinking about something and that results in you being emotional. So it depends on case by case basis
ibrar
emotions
Odong
But the emotions are formed by the thinking
Jobin
i think emotion cemes the first.
yuusuf
emotions come first
Mary
it proves after thinking you feel something..and you feel emotions because of nervous system
Kashifa
i think thinking....that's the way that i look then think and after that i feel
Muhammad
emotions.... Obviously....Many at times....we get emotional n then we use our brains and observe n analyse the situation again...it leads to thinking....N thinking is nothing but chain of thoughts.... which leads to our action😀
Sarthak
i think it depends on the kind of situation and the level of i guess importance you give it when something happens. However, most times emotion comes first because humans tend to act upon their feelings a lot. And i think it happens at the same time as well.
Lieann
Emotions are not in our control but we can control our thinking. Because, thinking based on our will. So, emotions come first.
Miraj
Good night everyone💜
Miraj
Equilibrium price is a stable price and it must stay.discuss
Elvis Reply
Card 14 / 21: What are the similarities between a consumer’s budget constraint and society’s production possibilities frontier, not just graphically but analytically?
Ali Reply

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