EC250 Lecture Notes - Lecture 3: Human Planet, Capital Cost Allowance, Canadian Dollar
Document Summary
The labour market is predicted to push interest rates up. Unemployment in us is at its natural rate 5% Unemployment is not too low and in any case there is no signs that it will increase in the future. Japanese economy has not been growing, there is deflation. Push the interest rate of 10 year bonds to zero. *main cause of economic growth is increase in tech. Moores law: double of computer chips, continued for 15 years. Csnea: canadian system of national economic accounts: accounting rules that provide concepts and definitions. Standard measure of economic activity is gdp. Gross: not excluding the value of capital used during a year. Exclusions: household work, unrecorded activities and effect on the env. Dont care about canadas output but how it changes between years. In poorer countries household work is more important, causing gdp to be extremely low. Flows and stocks: the distinction between both is important.
