complete set of unrevised notes from spring 2010 (pdf)irelandp.com/ec132/notes/notes2010s.pdf ·...
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Y = C + I +G + NX
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Y = C + I +G + X M
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GDP Deflator = Nominal GDP
Real GDP100
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CPI =Cost of the Basket in the Current Year
Cost of the Basket in a Base Year100
Inflation Rate =CPI in Current Year CPI in Previous Year
CPI in Previous Year100
Number of Baskets Bought by Ruth in 1931 =$80,000 in 1931
Cost of Each Basket in 1931
2007 Cost of the Baskets Bought by Ruth in 1931
= Cost of Each Basket in 2007 Number of Baskets Bought by Ruth in 1931
= Cost of Each Basket in 2007$80,000 in 1931
Cost of Each Basket in 1931
2007 Cost of the Baskets Bought by Ruth in 1931
=Cost of Each Basket in 2007
Cost of Each Basket in a Base Year100
Cost of Each Basket in a Base Year
Cost of Each Basket in 1931
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100$80,000 in 1931
2007 Cost of the Baskets Bought by Ruth in 1931 =CPI in 2007
CPI in 1931$80,000 in 1931
Value in this Year's Dollars = Value in a Past Year's DollarsCPI This Year
CPI in the Past Year
Value of Ruth's Salary in 2007 Dollars = $80,000 in 1931 Dollars207
15.2= $1,089,474
Value of Hoover's Salary in 2007 Dollars = $75,000 in 1931 Dollars207
15.2= $1,021,382
Real Interest Rate = Nominal Interest Rate Inflation Rate
Labor Force = Number of Employed + Number of Unemployed
Unemployment Rate =Number of Unemployed
Labor Force100
Labor Force Participation Rate =Labor Force
Adult Population100
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P =dollars
basket of goods
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P=
baskets of goods
dollars
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