ECON102 Lecture Notes - Lecture 28: Money Supply, Price Level, Bulgarian Lev

• School: University of Alberta
• Department: Economics
• Course: ECON102
• Professor: Andrew Wong

Document Summary

Econ 102 lecture 28 in a9on deep dive. In a9on is an overall rise in prices in the economy. Basically means the money in your pocket has a lower purchasing power. De a9on is an overall fall in prices in the economy. Basically means the money in your pocket has a higher purchasing power. Core in a9on excludes goods with historically vola2le price changes. We talked about this when we studied cpi. All-items in a9on includes all of the goods that the average consumer buys. Vola9lity of in a9on example (from chapter 15. pptx , slide 3) Over 2me you can see in a2on never stays constant. Core cpi varies less than the all items cpi. A country"s gdp is simply an accoun2ng of all of the purchases and sales that take place over a given period of 2me. Measuring output in terms of money can be problema2c.