Learning Objective #2: To Measure
Economic Activity, Unemployment, and
Inflation
GDP, GDP growth
Inflation
Unemployment
Roadmap
1.
http:/www.cbc.ca/player/News/Business/ID/2501462458/
2.
Nominal GDP
Measuring Canadian Nominal GDP (Expenditure Approach,
Roadmap
Graphing Relationships Among Two Variables
Scatter Diagrams
Variables That Move in the Same Direction
Variables That Move in Opposite Directions
Variables That are Unrelated
The Slope of a Straight Line
Graphing Relationships Among More Than Two
V
Roadmap
1. Market and Prices
2. Demand
1. Law of Demand
2. Demand Curve vs. Demand Schedule
3. Willingness and Ability to Pay
4. Market Demand
5. Changes in Quantity Demanded and Changes in Demand
6. Factors that Change the Demand of a Good
1. Market and
Page 1
Chapter 1, Slide Set 1, The Conditional Expectation Function!
"
Slide 1
1. As you have or will learn from reading the first chapter of your textbook, economists
use methods and techniques from statistics to test their theories, forecast economic
qu
Set 2_1_The simple linear regression function!
!
Slide 2
1. Chapter 2 of Wooldridges textbook starts us off with the simplest of regression
frameworks. We have just two observed variables, one the explained variable and
the other the explanatory variable.
Set 1_1 Slide Notes!
Slide 1
This set reviews the purposes of econometrics, asks you to think about some
examples, and introduces a flow chart of the stages in an econometric study.!
Slide 2
William Greene offers a succinct, standard definition in terms o
Chapter 2, Slide Set 4, Interpreting SLR Results!
Slide 1
Accurate interpretation of regression results is essential if they are to be of any use.
Attaching the correct meaning to an estimate requires that you pay attention to the units
of the explained i
Set 1_3 Slide Notes!
Slide 1
We have an econometric model. As we learned from an earlier discussion the model
is the connection between the theoretical world (e.g. Beckers model of criminal
behaviour) and the real world (varying crime rates over major Can
Slide Set 2_0_Least squares!
Slide 1
When we studied the conditional expectation function, I claimed that I would predict the
wages earned by a randomly chosen earner with the expected value of the wage for the
category they were in.!
I claimed that I wou
1
Set 1_4 Slide Notes!
Slide 1
In her 2007 book, Hunting Causes and Using Them, philosopher of social science Nancy
Cartwright states Until a few years ago real causal claims were in disrepute in philosophy
and economics Nowadays causality is back, and wi
3
Slide Notes for Set 2_4 Interpreting OLS Results!
Slide 1
Its time to return to the least-squares idea so that we can understand what calculations
Stata is using when we ask it to carry out a simple linear regression estimation.!
Slide 2
Here we review
Set 1_2 Slide Notes!
Slide 1
This set begins with a question why are crime rates interesting enough to study
using econometric methods?!
Slide 2
This graph is an example of a dot chart. Use it when you have a small number of
cross section units, and you w
Slide Set 2_2_Conditional mean zero!
Slide 1
Whether the results of a simple regression show causality depends on the zero
conditional mean property holding for the population. So, in order for you to be able to
critically assess a regression result, you