complete set of unrevised notes from fall 2010 (pdf)irelandp.com/ec132/notes/notes2010f.pdf · 2007...
TRANSCRIPT
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84 F(%!'2(,-<&'%-',-'%-6#"'6/%2&'!(%."!'"(&'!#66+3'2#/;&'.)/'%2&'2/&,04'=4 H%-2&'.&*&/'%2&'2/&,0'2)-&!',/&'!#66+%&$',"',-3'<%;&-'6/%2&B'"(&'!#66+3'2#/;&'!(%."!'")'"(&'+&."4'?4 @!'!()*-'%-'.%<#/&'88B'"(&'&>#%+%:/%#0'>#,-"%"3'.,++!',-$'"(&'&>#%+%:/%#0'6/%2&'/%!&!4'
@<,%-':&.)/&'*&'>#%"B'+&"D!'2)-!%$&/'"(&'&2)-)0%2!':&(%-$'"(%!'</,6(%2,+',-,+3!%!4'
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\4 V(,"'(,66&-!'%-','0,/1&"'&2)-)03'%.'"&2(-)+)<%2,+',$;,-2&!'0,1&'%"'6)!!%:+&'.)/'2)06,-%&!'")'0,-#.,2"#/&':%<'!2/&&-'Fc!',"','0#2('+)*&/'2)!"M'V(3'*)#+$'0)/&'2)-!#0&/!'L'&;&-'"()!&'*()'$)-D"'1&&6'#6'*%"('"(&'+,"&!"'-&*!',:)#"'KGE',-$'6+,!0,'$%!6+,3!'L'2())!&'")':#3':%<'!2/&&-'Fc!',!','/&!#+"').'"(&!&'"&2(-)+)<%2,+'2(,-<&!M'
o
o
o
o
Y = C + I +G + NX
o
o
o
o
Y = C + I +G + X M
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
GDP Deflator = Nominal GDP
Real GDP100
o
o
o
o
o
o
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
1
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
o
o
o
P =dollars
basket of goods
1
P=
baskets of goods
dollars
o
o
o
o
