ECON102 Lecture 5: ECON 102 Lecture 5 -Price Level & Finance, Saving, and Investment

• School: University of Waterloo
• Department: Economics
• Course: ECON102
• Professor: Maryann Vaughan

Document Summary

Econ 102 lecture 5 price level & finance, saving, and investment. = (nominal gdp / real gdp) * 100: the gdp deflator. The gdp deflator measures the price of output to its level in the base year. The gdp deflator is a price index which measures the overall price level. Gdp deflator = (nominal gdp 2018 / real gdp 2018) * 100. = ( ip2018i * q2018i)/ ( ip2002i * q 2018i) * 100. In these sums, all the quantity terms will be the same (numerator and denominator) for a given year, reflecting the effect of relative changes in prices only. Gdp def this year gdp def lasy year. Financial markets and financial institutions: capital and investment. = gross investment - depreciation: wealth and saving. Wealth the value of all things that people own. Private saving - = y-t-c, what remains your income after paying axes. Income received during a period of time and consumption expenditure: financial capital markets.