worksheet2 - Worksheet 2: GDP, Inflation and the Origins of...

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Worksheet 2: GDP, Inflation and the Origins of Macroeconomics 1. What are the important dates and issues that started the modern study of macroeconomics? - Stock Market Crash - 1929; Great Depression - US Banks fail - 1930 – 1932 - World Depression – 1933 - Founding of the FDIC – 1933 - Social Security – 1935 - Keynes' General Theory of Unemployment – 1936 - World War II - 1939 – 1945 - Employment Act - 1946 2. What is the difference between real and nominal GDP? Why is this important? The difference between real and nominal GDP is that nominal GDP takes out the effects of price increases. Real GDP is the measurement that includes inflation in the estimate and is typically higher than the nominal GDP. 3. What is the Consumer Price Index? What was the inflation rate for the month of December 2011? (check out www.bls.gov ) What was it for the previous 12 months? Name 2 ways the CPI is used. Consumer Price Index is the data collected on the variation in prices paid by typical
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This note was uploaded on 04/04/2012 for the course ECON 104 taught by Professor Dolenc during the Spring '08 term at UMass (Amherst).

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worksheet2 - Worksheet 2: GDP, Inflation and the Origins of...

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