ECN 204 Lecture Notes - Lecture 5: Aex Index
15 Nov 2015
School
Department
Course
Professor
Document Summary
Real gdp = current q x base year p. Gnp= gdp+ canadian incomes abroad foreigners income in canada. Gdp depreciation = ndp ( net domestic product) Ndp indirect tax+ subsidies =ni (national income) earned income. Ni (undistributed profit + social contributions for example ei, cpp- ) + transfer payment welfare = pi (personal income) income received. *how to calculate inflation rate: [(cpi2015 cpi2014)/cpi2014] x 100. *rule of 70: # of years the price level to double = 70/inflation rate. Nominal/actual rate of interest (roi) = real rate of interest + anticipated interest rate. There is a direct/positive relationship between c and y. Mpc = change in c/change in y = 40/50=0. 8 or 80% Mps = change in s/change in y = 10/50=0. 2 or 20% C= a+by a= mpc+mps = 1 or autonomous c b= mpc. Change in y/gdp = change in ae x (1/mps) Mpm = change in imports (m)/change in income(y) for ex.
