Section 1 - 1 What is the civilian unemployment rate What...

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UNIVERSITY OF CALIFORNIA, BERKELEY Dorian Carloni Department of Economics ECON 100B, Fall 2011 SECTION 1: The Policy and Practice of Macroeconomics 1.1.The Purpose: Interpreting Macro Data Macroeconomics focuses on 3 main indicators: 1. Real GDP 2. The Unemployment Rate 3. Real GDP time What do we mean by Real GDP per capita? What is the trend? And what do we mean by business cycle? What is a stabilization policy? What is the di/erence between a recession and a depression? What do we mean by year to year percentage change in Real GDP? How is it calculated? The Unemployment Rate: measures the percentage of the labor force who are actively looking for work but
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Unformatted text preview: 1 What is the civilian unemployment rate? What does SA (Seasonally adjusted mean)? What can we say about the unemployment rate in the US in the last couple years? In&ation rate: measures how rapidly the overall price level is rising In&ation vs. De&ation? What is the CPI? Do you know of other price indexes? 1.2. Macroeconomic policy Macroeconomic policies use economic models to determine how to produce better macroeconomic outcomes. & Fiscal policy is the governments decisions about spending and taxes & Monetary policy is the central banks decisions about the level of short term interest rates or the growth of the money supply They are important as they a/ect: 1. savings and consumption decisions 2. nancial markets 3. trade imbalances 2...
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Section 1 - 1 What is the civilian unemployment rate What...

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