ECO 1102 Lecture Notes - Lecture 6: Capital Good, Nominal Interest Rate, Real Interest Rate

• School: University of Ottawa
• Department: Economics
• Course: ECO 1102
• Professor: David Gray

Document Summary

Cpi used to adjust the canada pension plan (cpp): the cpp retirement pension is a monthly benefit designed to replace about. It is income tested: for 2015, higher-income individuals must repay the pension benefit at a rate of 15% of net income for income tax purposes in excess of. ,809: individuals with incomes exceeding ,909 do not receive it, oas benefits are adjusted quarterly (jan/apr/jul/oct) to reflect increases in the cost of living as measured by the cpi. Improvements in the quality of goods in the basket increase the value of each dollar: ex. More fuel efficient cars: statistics canada tries to account for quality changes but likely misses some, as quality is difficult to measure, thus, the cpi overstates increases in the cost of living. The gdp deflator versus the cpi: economists and policymakers monitor both the gdp deflator and cpi to gauge how quickly prices are rising.