Chapter2LectureNotes

Chapter2LectureNotes - Stocks vs Flows GDP Real vs Nominal...

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Unformatted text preview: Stocks vs Flows GDP Real vs Nominal Prices Employment Intermediate Macroeconomics, 321 Chapter 2 Data Instructor Geoffrey Williams Rutgers University May 26, 2009 Instructor Geoffrey Williams Chapter 2 Stocks vs Flows GDP Real vs Nominal Prices Employment Outline 1 Stocks vs Flows 2 GDP Rules Components Income 3 Real vs Nominal Prices GDP Deflator Consumer Price Index Comparing CPI vs GDP Deflator 4 Employment How Is Data Gathered? Definitions Patterns Data Issues Instructor Geoffrey Williams Chapter 2 Stocks vs Flows GDP Real vs Nominal Prices Employment Main Data Concepts 1 Gross Domestic Product (GDP) - National income and expenditure 2 Consumer Price Index (CPI) - Price levels 3 Unemployment rate Instructor Geoffrey Williams Chapter 2 Stocks vs Flows GDP Real vs Nominal Prices Employment Stocks vs Flows Instructor Geoffrey Williams Chapter 2 Stocks vs Flows GDP Real vs Nominal Prices Employment Clicker Question All of the following are a stock except: (A) a consumer’s wealth (B) the government budget deficit (C) the number of unemployed people (D) the amount of capital in the economy Instructor Geoffrey Williams Chapter 2 Stocks vs Flows GDP Real vs Nominal Prices Employment Clicker Question All of the following are a stock except: (A) a consumer’s wealth (B) the government budget deficit (C) the number of unemployed people (D) the amount of capital in the economy Answer: B Instructor Geoffrey Williams Chapter 2 Stocks vs Flows GDP Real vs Nominal Prices Employment Clicker Question All of the following are a flow except: (A) the number of new automobile purchases (B) the number of people losing their jobs (C) business expenditures on plant and equipment (D) the government debt Instructor Geoffrey Williams Chapter 2 Stocks vs Flows GDP Real vs Nominal Prices Employment Clicker Question All of the following are a flow except: (A) the number of new automobile purchases (B) the number of people losing their jobs (C) business expenditures on plant and equipment (D) the government debt Answer: D Instructor Geoffrey Williams Chapter 2 Stocks vs Flows GDP Real vs Nominal Prices Employment Rules Components Income Two Sides of GDP Total income of everybody in the economy Total expenditure on the economys output of goods and services We can see that these are two sides of the same coin - we each have income of some kind, which we then spend on goods and services (where it then becomes somebody elses income, and so on and so on.) Instructor Geoffrey Williams Chapter 2 Stocks vs Flows GDP Real vs Nominal Prices Employment Rules Components Income How would YOU track GDP? Lets take a moment to think through how to approach this question. First off, whats a simple model of the economy?...
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This note was uploaded on 02/29/2012 for the course 320 322 taught by Professor Macro-williams,micro-yoshi during the Fall '10 term at Rutgers.

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Chapter2LectureNotes - Stocks vs Flows GDP Real vs Nominal...

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