AS.180.101 Lecture Notes - Lecture 4: Seasonal Adjustment, Gross National Product, Transfer Payment
Document Summary
Yesterday: iran deal reached decision in the senate, economists looking at oil prices now. Oil is a surprising product: compare cheerios and oil. Cheerios never once gone down in price, fluctuates by a few cents per pound. Whereas oil has huge volatility, can fall by 50% or double in the same few months. The bureau of economic analysis (bea) provides both annual and quarterly updates. August 2015, bea estimated 2014 gdp to be 15. 962 trillion. This in the calendar year of 2014 the values of all goods and services, at constant prices (real gdp), equaled 15. 962 trillion. Inflation: overall price change: subtracted to calculate constant dollar gdp. The overall price level is a comprehensive basket of goods and services. The inflation rate is the speed with which the overall price level is changing. Inflation measures: used to calculate real gdp: ex: if nominal gdp rises 4. 25% overral prices levels rise by 2. 05, then gdp is roughly 2. 2%
