CAS EC 102 Chapter Notes - Chapter 5: Formal Methods, Business Cycle, Gdp Deflator

• School: Boston University
• Department: Economics
• Course: CAS EC 102
• Professor: Jay Zagorsky

Document Summary

Gdp is simple indicator for how all businesses are faring. Compare growth to gdp over the same period. For detailed data of us; go to bureau of economic analysis. In 1929 us produced less that ,000 per person. 80 years later, output per person is over 5x larger. Fedex leads gdp so we should watch it. If your company is leading, the gdp peak/valley happens after the company"s. If your company is lagging, the gdp peaks/valley happens before the company"s. If your company is coincident, the gdp peaks/valley matches. Zero means two series do not match at all. Negative 1 means two series are completely opposite. Correlation of the growth in fedex sales to the gdp growth is 0. 26. Correlation of the lag to growth in gdp is 0. 10. Correlation of fedex sales leading to gdp is 0. 22. Us is not the richest place per capita. Ethiopia, congo and burundi is about per year for a person.