In this lesson, we'll look at some key macroeconomic terms related to consumers and prices.

This includes ideas such as the income gap, the cost of living and the Consumer Price index.

We will also explore concepts such as inflation and purchasing power, as well as disposable income, household debt and consumer spending.

Income gap income gap The income gap is the difference between the income and assets of people and groups in society.

The income gap is sometimes called the gap between the rich and the poor.

Countries with a large income gap typically have higher rates of health and social problems.

Inflation, Inflation Inflation is the rate of increase in the price of goods and services.

As costs rise, the value of money decreases.

Inflation is rising quickly, which worries both economists and consumers.

Cost of living cost of living.

The cost of living is the average cost of people's basic needs, such as food, housing and clothes.

While Vancouver is seen as a desirable place to live, high housing prices have driven up the cost of living Consumer Price index.

C p i.

The consumer price index shows the change in average prices of basic consumer goods and services.

The CPI I helps to show changes in the cost of living.

Although food prices in Korea increased by 7.4% in February, the overall consumer price index only rose 1.4%.

Purchasing power purchasing power purchasing power is how much goods or services weaken by with a unit of money.

As prices go up, the purchasing power of our money goes down.

The purchasing power of $1 in 1913 was about the same as $20 in 2006.

Disposable income, disposable income, the amount of money we have to spend or save after paying taxes is called disposable income.

When consumers are concerned about the economy, they often put more of their disposable income into savings.

Consumer spending, consumer spending, consumer spending or consumption is how much money is spent by consumers in an economy.

Consumer spending includes durables such as furniture and nondurables, such as food.

Bloomberg reports that consumer spending rose last month despite an increase in payroll tax, household debt, household debt, household debt is the amount of money owed by consumers.

This includes consumer debt such as credit cards and mortgage loans.

In the early two thousands, the average American household debt surpassed the average American household income.

Now it's your turn to practice some of the words we have studied in this lesson.

In a moment you'll hear a series of sentences with the word replaced with a beep.

Repeat each sentence, including the missing word.

For example, if you hear central banks often adjust interest rates to help the economy avoid huge swings in the business.

Uh, you can say central banks often adjust interest rates to help the economy avoid huge swings in the business cycle.

We'll play the correct answer after each question ready, Let's give it a go.

Many countries are concerned about the widening income no between rich and poor, and said many countries are concerned about the widening income gap between rich and poor.

I liked London, but I feel the cost of is just too high for me.

Answer.

I like London, but I feel the cost of living is just too high for me.

Rising oil prices are pushing the overall rate higher.

Answer rising oil prices are pushing the overall inflation rate higher.

That's all for this episode of video vocab.

Be sure to check out our website at www dot video vocab dot tv.

Thanks for watching and see you again soon.