Lecture8-saving

Lecture8-saving - Tracking S&I Econ 2: Principles of...

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Tracking Econ 2: Principles of Macroeconomics Peter Rupert UCSB Winter, 2010 1 / 51 Econ 2: Principles of Macroeconomics
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Tracking Tracking the Economy Preview of coming attractions Forbes article: This week On the stimulus program Earlier article Click: Cooley-Rupert 2 / 51 Econ 2: Principles of Macroeconomics
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Tracking Tracking the Economy A tale of two economies Although signs that GDP and consumption have rebounded Another “economy” does not seem to be doing well 3 / 51 Econ 2: Principles of Macroeconomics
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Tracking 4 / 51 Econ 2: Principles of Macroeconomics
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Tracking 5 / 51 Econ 2: Principles of Macroeconomics
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Tracking Real Personal Consumption Expenditures Quarters from previous peak Percentage change from previous peak Source: Bureau of Economic Analysis 2 4 6 8 10 12 -8 -6 -4 -2 0 2 4 6 8 1973 cycle 1981 cycle 1990 cycle 2001 cycle Current cycle 6 / 51 Econ 2: Principles of Macroeconomics
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Tracking Fixed Investment Quarters from previous peak Percentage change from previous peak Source: Bureau of Economic Analysis 2 4 6 8 10 12 -35 -30 -25 -20 -15 -10 -5 0 5 10 15 20 1973 cycle 1981 cycle 1990 cycle 2001 cycle Current cycle 7 / 51 Econ 2: Principles of Macroeconomics
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Tracking Total Private Average Weekly Hours of Production Workers Months from previous peak Percentage change from previous peak Source: Bureau of Labor Statistics 5 10 15 20 25 30 35 -8 -6 -4 -2 0 2 4 6 8 1973 cycle 1981 cycle 1990 cycle 2001 cycle Current cycle 8 / 51 Econ 2: Principles of Macroeconomics
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Tracking Real Private Average Wage Months from previous peak Percentage change from previous peak Source: Bureau of Labor Statistics 5 10 15 20 25 30 35 -8 -6 -4 -2 0 2 4 6 8 1973 cycle 1981 cycle 1990 cycle 2001 cycle Current cycle 9 / 51 Econ 2: Principles of Macroeconomics
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Tracking Private Employment Months from previous peak Percentage change from previous peak Source: Bureau of Labor Statistics 5 10 15 20 25 30 35 -8 -6 -4 -2 0 2 4 6 8 1973 cycle 1981 cycle 1990 cycle 2001 cycle Current cycle 10 / 51 Econ 2: Principles of Macroeconomics
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Tracking Employment to Population (above 16) Ratio Quarters from previous peak Percentage change from previous peak Source: Bureau of Labor Statistics 2 4 6 8 10 12 -8 -6 -4 -2 0 2 4 6 8 1973 cycle 1981 cycle 1990 cycle 2001 cycle Current cycle 11 / 51 Econ 2: Principles of Macroeconomics
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Tracking Present Discounted Value (1) How much is $100,000 ( A ) received 10 years from now worth today ( P ) If the interest rate ( i ) is 5%? (a.) P = A / 10( i ) = $200 , 000 (b.) P = A / (1 + i ) 10 = $61 , 391 (c.) P = A (1 + i ) / 10 = $16 , 289 (d.) P = A / i = $2 , 000 , 000 12 / 51 Econ 2: Principles of Macroeconomics
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Tracking Present Discounted Value (1) How much is $100,000 ( A ) received 10 years from now worth today ( P ) If the interest rate ( i ) is 5%? (a.)
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This note was uploaded on 11/15/2010 for the course ECON 2 taught by Professor Rupert during the Winter '08 term at UCSB.

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Lecture8-saving - Tracking S&I Econ 2: Principles of...

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