What is elasticity of demand gnp can go up down or not

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Unformatted text preview: is the final good • Does price of electricity go up? What is elasticity of demand? • GNP can go up, down, or not change Tuesday, December 3, 2013 Net National Product does not measure • What is measured: depreciation of capital such as machinery and buildings • What is not measured: natural capital such as forest, soils, rivers • Reserves of Oil and minerals not measured • Using natural capital leads to higher NNP than using physical capital Tuesday, December 3, 2013 Greening GDP • Adjust national accounts to take into account environmental and other missing factors • Genuine Progress Indicator - 26 categories of adjustment • Taking these into account lowers GDP growth to zero since 1978 Tuesday, December 3, 2013 Examples: Environmental Adjustments Opportunity costs of working extra hours 400million Depletion of Resources 1.7trillion Depletion of Ozone Carbon Dioxide 479 billion 1.12 trillion Other Air Pollution 40 billion Water Pollution 120 billion Tuesday, December 3, 2013 Comparisons across countries • National Accounts allow us to compare across countries • GDP/ capita as measure of wealth of countries • GDP growth rate as measure of economic dynamism Tuesday, December 3, 2013 Kuznets curve - Income Inequality Tuesday, December 3, 2013 Kuznets curve with data - across countries Tuesday, December 3, 2013 500 1000 2000 4000 8000 GDP per capita 16000 32000 Within countries Kuznets cigure 8: Nondoes not in...
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This note was uploaded on 12/09/2013 for the course EEP 1 taught by Professor Berk during the Spring '12 term at University of California, Berkeley.

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