econ notes 4 - a Factories b Mines c Utilities 6 If a...

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1. The most important price index is the consumer price index (CPI) (CPI-U=CPI-Urban) (CPI-W=CPI-Worker) a. Which items to include b. How important each item is c. Core - exclude volatile food and energy indexes. i. Gas and electric 2. Exports a. What we sell to other countries 3. Imports a. What we buy from other countries 4. If we buy more than we sell then we have what is called a trade deficit, which is the opposite of a trade surplus 5. Industrial Production consists of
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Unformatted text preview: a. Factories b. Mines c. Utilities 6. If a factory can turn out 2000 units a month at maximum and it is currently producing 1600 units then its capacity utilization is 80% 7. People either spend or save their after tax income. Those are the only 2 choices, saving means not spending. a. Savings rate i. The percentage of after-tax income that is saved. 8. Goods are either Durable and lasting longer than 3 years, or non-durable....
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