“Calculating the Candy Price Index”
“In this classroom experiment, students develop a price index based on candy-purchasing decisions made by members of their class. They use their index to practice calculationg inflation rates and to consider the strengths and weaknesses of the consumer prices index (CPI). Instructors can use the experiment as an introduction to the topic of inflation and how it is measured. The exercise also provides a concret example of the sources of bias in the CPI, promoting discussion of the measures the Bureau of Labor Statistics has taken to reduce bias. The experiment, including follow-up discussion, fits into a 50-minutes class period. The authors and other professors have used the exercise in introduction and intermediate macroeconomics courses, in classes of 10 to 135 students.” Read more.
“Calculating the Candy Price Index: A Classroom Inflation Experiment”
Denise Hazlet and Cynthia D. Hill
The Journal of Economic Education, Vol. 34, No. 3 (Summer, 2003), pp. 214-223.
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