Compute the index compute the ina8on rate comparing

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Unformatted text preview: sure of the overall level of prices. One way to measure the economy’s inflaCon rate is to compute the percentage increase in the GDP deflator from one year to the next Chapter 11 - Measuring the Cost of Living Compute the basket’s cost: Use the prices to compute the total cost of the basket. Compute the index Compute the infla8on rate Comparing Dollar Figures from Different Times Real interest rate = (Nominal interest rate) – (InflaCon rate) Chapter 12 - ProducCon and Growth Physical Capital Per Worker: Human Capital Per Worker: Natural Resources Per Worker: The ProducCon FuncCon: where F( ) – a func3on that shows how inputs are combined to produce output “A” – the level of technology Chapter 13 - Saving, Investment, and the Financial System Private saving : The por3on of households’ income that is not used for...
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