econ notes 3 - Eg. Consumer confidence index. I....

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I. Seasonal Adjustment - a. uses statistical methods to adjust the raw data to remove the seasonal influence and avoild misinterpreting economic news. I. Annual Rate a. Economic indicators that are measured over a month or a quarter may be annualized to show what the result would be IF the behavior in that month or quarter were to continue for an entire year. b. Real values are inflation adjusted c. Nominal values are not inflation adjusted i. Eg. Real income I. Economic data a. Statistical information about economy and economic indicators i. Time series data - data recorded over many time periods. 1. Eg. Measured monthly for 25 years. ii. Cross section data - data recorded only in a single time period. 1. Eg. Survey of 10000 households' budgets for 1998. I. Index number a. An economic indicator with no natural measurer, so you have to create one by looking back in the past to create a scale to measure relative to the selected value which is set to 100. i.
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Unformatted text preview: Eg. Consumer confidence index. I. Cost-benefit analysis a. Measurement of the cost vs. the benefit of a given action. b. The economist's approach to making decisions. c. Has many problems i. Result will be wrong if you forget to take even one thing into account. ii. Also has a problem with quantifying some things, such as value of human life. I. Marginal analysis a. Making decisions based on the incremental or additional costs and benefits resulting from persuing an activity to a slightly greater extent i. Eg. How many cookies to eat? ii. Eg. How many jars of peanut butter to produce? I. An unemployed person is a. Age 16 or over without an upper age limit b. Has no ob-working 1 hr. or more is employed. c. If available for work, not a full time student, not in an institution. d. Is looking for work, and not retired. I. Labor force - employed + unemployed. Much of the population is not in the labor force...
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This note was uploaded on 02/12/2009 for the course ECON 100 taught by Professor Hayworth during the Winter '08 term at Eastern Michigan University.

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