ECON 2H03 Lecture Notes - Lecture 5: Gdp Deflator
23 Sep 2016
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For any variables x and y : percent change in xy = approx percent change in x + percent change in y. Ex income, hourly wage x hours worked, so add the percent changes in each to get final change percentage. : percent change in x/y = approx percent change in x - percent change in y. Consumer price index , a measure of the overall price level , published by stats can. Used to track cost of living, adjusts contracts for inflation , allows comparison or dollar amounts. Survey is conducted to determine typical goods/services, called the basket. Prices are collected based on basket items, to compute cost of basket. The the basket is reflected in cpi, ex housing price changes affects it more than change in milk prices. 2015 -- cpi 117. 1 weight of good in. Inflation rate is the difference between cpi values from year to year - from 2014-2015 in our data, it is 2. 5%
