Lecture6-model

Lecture6-model - Tracking Growth Poverty Econ 2 Principles...

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Unformatted text preview: Tracking Growth Poverty Econ 2: Principles of Macroeconomics Peter Rupert UCSB Winter, 2010 1 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Initia Jobless Claims (1) Initial jobless claims released today reported: (a.) Decrease in claims to 400,000 (b.) Decrease in claims to 440,000 (c.) Roughly no change in claims (d.) Increase in claims to 482,000 (e.) I just don’t care about the freaking claims 2 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Initia Jobless Claims (1) Initial jobless claims released today reported: (a.) Decrease in claims to 400,000 (b.) Decrease in claims to 440,000 (c.) Roughly no change in claims (d.) Increase in claims to 482,000 X (e.) I just don’t care about the freaking claims 2 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Tracking the Economy 3 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Tracking the Economy 4 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Tracking the Economy Housing sector providing mixed signals Housing starts fell New housing permits rose 5 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Tracking the Economy 6 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Tracking the Economy 7 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Tracking the Economy 8 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Tracking the Economy Producer Price Index (PPI) Looks at prices in the wholesale market That is, what producers are paying 9 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Tracking the Economy 10 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Tracking the Economy 11 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Tracking the Economy 12 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Tracking the Economy And, the trade balance, (X-M) 13 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Tracking the Economy 14 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Economic Growth Large cross-country differences in incomes Also, in growth rates What causes economic growth? And, what may deter growth? 15 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Economic Growth Labor productivity is the key To understand its role, define Y : output (real GDP) POP : population N : employment Real per capita GDP is: Y POP 16 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Economic Growth Real per capita GDP = Y POP Multiply and divide by N : Y POP = Y N |{z} productivity × N POP | {z } employment share 17 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Economic Growth Since the share of population employed is bounded above The main mechanism for growth is labor productivity Click: Employment share Click: Productivity 18 / 68 Econ 2: Principles of Macroeconomics Tracking Growth Poverty Economic Growth...
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Lecture6-model - Tracking Growth Poverty Econ 2 Principles...

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