ECO 1102 Study Guide - Final Guide: Market Basket, Aggregate Supply, Interest Rate
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ECO 1102 Full Course Notes
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Consumer price index (cpi) : a measure that tracks changes in the cost of a basket of goods and services purchased by a typical canadian household inflation rate : the size of the change in the overall price level. Indexing : the practice of automatically increasing payments as the cost of living increases purchasing power parity : the theory that price levels in different countries should be the same when stated in a common currency. Ppp-adjustment : recalculating economic statistics to account for differences in price levels across countries. Rule of 70 : the amount of years it takes for income to double at the growth rate is equal to 70 divided by growth rate. Physical capital : the stock of equipment and structures that allows for the production of goods and services (kelvin"s family buys a new alarm/security system) Human capital : set of skills, knowledge experience, and talent that determines the productivity of worker (job experience)