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 •...
View Full Document
- Spring '10
- Macroeconomics, Value added, Consumer price index, personal bank account