Macroecon notes

Macroecon notes - to product Proposition Q=E=Y Price...

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Macroecon notes Flow- GDP is flow Stock is personal bank account Final goods- goods produced for the final stage of consumption or investment by firms Intermediate good- goods used up by firs mint eh middle of the production process Measuring Aggregate Output 3 approaches in National Income and Product Accounts Aggregate Product Q- sum of value added Aggregate Expenditure E- sum of expenditures by consumers, firms, government and foreign agents Aggregate Income Y- sum of income of all agents who contribute
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Unformatted text preview: to product Proposition Q=E=Y Price Indices Nominal GDP/real GDP*100- best for policy makers o Closest to theory we consider accurate Consumer Price Index- represents consumers o Consumption basket of urban consumers (87% of pop.) Cost of base year quantities at current price/cost of base year quantities at base year prices*100 Producer price index-best for producers-excludes services and includes intermediate goods like raw materials and semi-finished products...
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This note was uploaded on 02/08/2010 for the course ECON ECON 232 taught by Professor Hyeokjeong during the Spring '10 term at Vanderbilt.

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