Home » According to the classical theory (Chapter 12), as money supply increases (M1), price levels will rise (inflation). Look up data from 2005 to 2016…

# According to the classical theory (Chapter 12), as money supply increases (M1), price levels will rise (inflation). Look up data from 2005 to 2016…

According to the classical theory (Chapter 12), as money supply increases (M1), price levels will rise (inflation).  Look up data from 2005 to 2016 for M1 (use the month of January for each year). Then, calculate the inflation rate (% change in CPI). Use the following link to get the M1 and CPI data.

http://www.data360.org/dsg.aspx?Data_Set_Group_Id=2052&count=all

For CPI data go to Data Graph name box ( in the top right)  and click on CPI/PPI. Write one paragraph and explain your findings of M1 and inflation. For the CPI, select CPI All Items (use the month of January for each year).  Make sure to include tables for CPI and M1.

For the CPI, select CPI All Items.  Click on the top right corner to find the CPI. Write one paragraph and explain your findings of M1 and inflation. .Make sure to include tables for CPI and M1.

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