Read the following four sections of Ch 9 - Unemployment and Inflation in your eText:
9.4 - Measuring Inflation
9.5 - Using Price Indexes to Adjust for the Effects of Inflation
9.6 - Nominal Interest Rates versus Real Interest Rates
9.7 - Does Inflation Impose Costs on the Economy?
Pay special attention to the topics mentioned in the Module 3 Introduction.