MGTA01H3 Lecture Notes - Lecture 5: Hyperinflation, Deflation
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MGTA01H3 Full Course Notes
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Document Summary
Gdp: it represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy. Usually, gdp is expressed as a comparison to the previous quarter or year. For example, if the year- to-year gdp is up 3%, this is thought to mean that the economy has grown by 3% over the last year. Prices go up but goods are the same. Hurts people on fixed incomes (pensioners)-> old people. Definition of inflation by prof"s friend jack: Government prints too much money; especially if you print out money at a faster rate than the economy grows. They made a decision to print lots of money in us. Interest rates are supposed to fall when you print lots of dollar bills. Hyper-inflation: when money has no real value. You can"t take the hyper inflation gdp year to year of a country at face value.
