ECON 104 Lecture Notes - Lecture 7: Gdp Deflator, Black Market
8 Mar 2016
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Continue from week before midterm exam (chapter 6) How many goods and services are produced in a country in a year. Market value of those goods and services. G is for government purchases of final goods and services. Technical: prices reflect values: some stuff is not founded even if traded. Traded without price: childcare, household, leisure. Hdi (human development index: gdp + education + health + longevity. Compare over time: gdp per capita = gdp/population, gdp per capita = gdp/population, epiqi, price change, quantitive change. Current price ->nominal gdp: fixed prices (based year, gdp with those fixed prices. Unlike cpi, gdp deflator includes non-consumption good/services and excludes imports. Nominal gdp/gdp deflator = real gdp (in constant dollar) Economic growth: a sustainable long term increase in real gdp per capita. Every little bit of economic growth matters a lot. Rule of 70: if x grows by y% a year, it"ll take 70/y years for x to double.
