ECON282 Lecture Notes - Lecture 7: Discouraged Worker, Real Interest Rate, Gdp Deflator
24 Jan 2018
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When this value goes up, it mean that gdp actually went up. Cpi looks at prices of goods & services the average canadian spends money on. In canada, the baskets usually 200 goods & services. Its hard to keep track of stuff bought online, cpi doesn"t do it. The ones we hear of in the media, for taking a loan etc. The rate at which a borrower pays interest from a lender. How quickly is the value of an asset going up. Nominal interest rates can be negative contrary to what most people thought 10-15 years ago. A negative interest rate means that you would lose money by that % each year. Calculated by: r= real interest rate i= interest. Suppose you borrow for one year and at the end of the year you repay the plus of interest. It tells us about how many jobs were created, lost etc.
