# 2011 - given year Pt-index number-The base year Pt=1-Growth...

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ECO 301: 01/20/2011 National income and products accounts: 3. GDP is the sum of incomes in the economy in a given period Workers: wages Owners of the firms: profit Gov.: taxes Workers: Wa+Wb=200+150 O.F: PROa+ PROb= 1670+730 Gov.: TAXa+TAXb= 30+20 Sum is exactly 2800 GDP(production)= GDP(income) US YEAR GDP 1960 526 Billion \$ 2002 10,588 billion \$ REAL GDP= sum of Q of final goods multiplied by constant prices (base year) REAL GDP/Nominal GDP REAL GDP: case in handout 1999(base year, times the quantity in this year): 24,000*10=240,000 2000: 24,000*12=288,000 2001: 24,000*13=312,000 Nominal GDP: sum of Q of final goods multiplied by their current prices 1999: 20,000*10=200,000 2000: 24,000*12=288,000 2001: 26,000*13=338,000 REAL GDP---we use Y Nominal GDP---- \$Y Deflator=\$Yt/Yt=Pt ; just the ratio of the nominal GDP with the REAL GDP of one

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Unformatted text preview: given year Pt----index number-The base year: Pt=1-Growth rate of Pt gives the index rate Inf. Rate=Pt-Pt-1/Pt-1 \$Yt=Pt*Yt; this Pt index here give you something about price, so this P refers to price Short Run:-P fix-Labor mkt (no effect)-IS-LM model AD-------Production: the message in btw is that whatever is demanded must be produced AD-------Income: income increase, AD increase Income-------Production: GDP(financial)=GDP(incomes) GDP-----100.0-Consumptions (C): 70.0-Investment (I): 16.3 (include nonresidential and residential)-Govn’t Spending (schools, hospitals etc): 19.0-Net Exports (NX): (X-IM)-Inventory I (GDP-C-I-G-MX) GDP=C+I+G+(X-IM)+I~...
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## This note was uploaded on 02/15/2011 for the course ECO 441 taught by Professor Jason during the Spring '11 term at University of Miami.

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2011 - given year Pt-index number-The base year Pt=1-Growth...

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