ECON 162 Lecture Notes - Lecture 1: Producer Price Index, Federal Reserve System, Durable Good
25 Oct 2016
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Document Summary
Macroeconomics study of the relationships between aggregate economic variables and the choices made by policymakers to influence those variables. Macroeconomic objectives: stable rate of gdp growth, high employment (low unemployment, stable prices (low inflation) Nominal (current prices) vs real (base year constant prices) Consumer price index (cpi) - measure of retail prices. Producer price index (ppi) - measure of producer"s costs. Nonfarm payroll employment - how many non-agricultural jobs created in the economy in the past month. Weekly jobless claim - how many people lost their jobs in the last week. Fiscal policy- changes in government spending & taxes. Monetary policy- changes in money supply and interest rates. Gross domestic product: measure of the market value of all final goods and services produced within a country"s borders in a year. Issues in calculating gdp: market value- measure the value of goods and services at market prices -- provides a common denominator ($).
