ECON 104 Study Guide - Seasonal Adjustment, National Bureau Of Economic Research

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1929: the stock market crash and the beginning of the great depression. 1939: the beginning of world war ii, depression lessens. 1946: the end of world war ii and the beginning of the pax americana . 1970s: the decline of the economy resulting from the oil embargo of "73 and wage stagnation. 1981: stock market crash leading into a deep recession. With real gdp, inflation and other variables have been accounted for and factored into the gdp; whereas with nominal gdp the inflation rates have not been taken into account. The consumer price index is a program that produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services (bls. gov/cpi) The inflation rate for august 2013 was +0. 1% change. For the previous 12 months, the inflation rate was +1. 5% (before seasonal adjustment) The cpi is used to track the inflation of household goods and services such as food and energy.