ECON202 Chapter Notes - Chapter 4.2-4.3: Unemployment, Weighted Arithmetic Mean, Gdp Deflator
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Applied analysis 4. 1, "youth unemployment," explores how and why youth unemployment is significantly higher than overall unemployment, especially in recession years. So far in this course (in module 2), we have so far examined individual prices in the economy, but we also need to examine some form of average prices. In march 2016, the cpi was at 127. 9, indicating that it costs 25. 5% more to buy the average basket of goods than it did to buy that basket in 2002. (source: statistics canada"s cansim ii database, table 326-0022. ) A key alternative measure of the price level comes from the gdp deflator, which measures the average prices of the goods produced by gdp. We will use the cpi to measure the cost of living for households, and use the gdp deflator as our price level for the aggregate economy. Inflation measures the rate of change in a price index.
