ECON 1BB3 Chapter Notes - Chapter 6-9: Nominal Interest Rate, Gdp Deflator, Real Interest Rate

39 views15 pages
adrianagreen0110 and 39672 others unlocked
ECON 1BB3 Full Course Notes
11
ECON 1BB3 Full Course Notes
Verified Note
11 documents

Document Summary

Chapter six measuring the cost of living. Consumer price index (cpi): measure of the overall cost of the goods/services bought by a typical consumer. Monitors changes in cost of living over time. When cpi rises, typical family has to spend more to maintain same standard of living. Inflation: situation where economy"s overall price level is rising. Inflation rate: percentage change in price level from previous period. Price of basket in base year: compute the inflation rate, inflation rate: percentage change in cpi from the proceeding period, inflation rate in year 2 = cpi in year 2 cpi in year 1 x (100) Core inflation: the measure of the underlying trend of inflation. Statistics canada makes monthly announcement of cpi. Unmeasured quality change: if quality of good falls, value of dollar falls even if price stays the same, if quality of good rises, value of dollar rises, overstates if rises, understates if falls.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related Documents

Related Questions