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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.
- Spring '11
- National Income