ECON 010 Lecture Notes - Lecture 8: Gdp Deflator
Document Summary
Recitation 8 discussion questions gdp: definition, calculation, deflator. Are we looking at the correct measure to understand standard of living across countries? no. Consider an economy that produces pizza, beer, and breweries. Pizza and beer are consumption goods demanded by college students, breweries are an investment good demanded by beer producers. Quantities and prices can be read off the following table. 2000: 100 + 100 + 100 = . 2001: 150 + 450 + 100 = . 2002: 200 + 400 + 100 = b) c) real gdp. 2001: 150 + 300 + 100 = . 2002: 100 + 400 + 100 = the gdp deflator.
