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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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 Summer '13

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