Principles of Macroeconomics Day 2 Dr Andrew L
- Slides: 8
Principles of Macroeconomics Day 2 Dr. Andrew L. H. Parkes “A Macroeconomic Understanding for use in Business” September 9, 2010 Principles of Macroeconomics, Day 2 卜安吉
Finish Chapter 23 & 24 n NIPA Accounts – Income and Expenditures – real GDP, etc. n Growth rate calculations n Consumer September 9, 2010 Price Index Principles of Macroeconomics, Day 2 2
Infrastructure n is the basic physical and organizational structures needed for the operation of the services and facilities necessary for an economy to function. n Airport infrastructure, Military infrastructure, Critical Infrastructure, … September 9, 2010 Principles of Macroeconomics, Day 2 3
Infrastructure n Critical Infrastructure is considered that which is essential and thus damageable by a typhoon, earthquake, flood, etc. n Electricity, gas, water, telecommunication, agriculture, heating, public health, transportation, financial services, police and fire protection services… September 9, 2010 Principles of Macroeconomics, Day 2 4
Infrastructure September 9, 2010 Principles of Macroeconomics, Day 2 5
Chapter 24 continued n Midterm Exam: Values of the indicators of the 3 Goals of Any Macroeconomy n For example: 0. 4% for the CPI for the U. S. in August 2009 n Also note the “year over year” rates of inflation -1. 5% September 9, 2010 Personal Savings revisions Principles of Macroeconomics, Day 2 6
Chapter 24 U. S. Department of Labor Bureau of Labor Statistics http: //www. bls. gov/cpi/ September 9, 2010 n Pay attention to the definition of the CPI in class! n CPI in U. S. is what? n Cost of Living is measured by the CPI Principles of Macroeconomics, Day 2 7
Cost of Living Adjustment Four problems with using the CPI for a Perfect measure of a COLA Substitution Bias 2. Introduction of new goods 3. Unmeasured quality changes 4. Typical Average Family 1. September 9, 2010 Principles of Macroeconomics, Day 2 8
