ECON 102 Lecture 3: Lecture #3
Document Summary
Economic indicator of the day: personal income & spending. Income + change in debt (aka credit) = taxes + debt interest + spending + Economic principle #10 - one person"s spending is another person"s income: proven in high correlation in the personal income & consumption expenditure . Blue box (stats/trends -- one per blue box will be on the exams) Personal income rose a strong 0. 4% m/m, 3. 3% y/y. Job creation is strong, creating many sectors and. Unemployment rate = 4. 9% employees will start gaining labor. A. 2. market power (because they"re harder to replace) Rental income is rising, 0. 7% (millennials renting instead of buying) Interest income growth low to due to low interest rates, 0. 3% Transfer income is falling as government support fades, 0. 4: spending. Strong durable goods (1. 6% m/m), falling nondurables (- 0. 5%) (b. 1. a. 1) price effect, not quantity effect, potentially because prices (gas, etc) have dropped. Rent -- up demand for durable goods & rising consumer confidence.
