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"}.lst-kix_924rz7bs0bp-4 > li:before{content:"- "}ol.lst-kix_ih7dq94nj13d-0{list-style-type:none}.lst-kix_ael0hoddpooj-8 > li:before{content:"" counter(lst-ctn-kix_ael0hoddpooj-8,lower-roman) ". "}.lst-kix_qzx7ivkh6a1a-7 > li:before{content:"- "}.lst-kix_qzx7ivkh6a1a-8 > li:before{content:"- "}.lst-kix_924rz7bs0bp-7 > li:before{content:"- "}ol.lst-kix_ih7dq94nj13d-2.start{counter-reset:lst-ctn-kix_ih7dq94nj13d-2 0}.lst-kix_924rz7bs0bp-8 > li:before{content:"- "}.lst-kix_ih7dq94nj13d-3 > li:before{content:"" counter(lst-ctn-kix_ih7dq94nj13d-3,decimal) ". "}.lst-kix_ih7dq94nj13d-1 > li:before{content:"" counter(lst-ctn-kix_ih7dq94nj13d-1,lower-latin) ". "}.lst-kix_ih7dq94nj13d-0 > li:before{content:"" counter(lst-ctn-kix_ih7dq94nj13d-0,decimal) ". "}.lst-kix_ih7dq94nj13d-4 > li:before{content:"" counter(lst-ctn-kix_ih7dq94nj13d-4,lower-latin) ". "}.lst-kix_ih7dq94nj13d-2 > li:before{content:"" counter(lst-ctn-kix_ih7dq94nj13d-2,lower-roman) ". "}ol.lst-kix_ael0hoddpooj-3.start{counter-reset:lst-ctn-kix_ael0hoddpooj-3 0}ol.lst-kix_ih7dq94nj13d-1{list-style-type:none}ol.lst-kix_ih7dq94nj13d-2{list-style-type:none}ol.lst-kix_ih7dq94nj13d-3{list-style-type:none}ol.lst-kix_ih7dq94nj13d-4{list-style-type:none}ol.lst-kix_ih7dq94nj13d-5{list-style-type:none}ol.lst-kix_ih7dq94nj13d-6{list-style-type:none}ol.lst-kix_ih7dq94nj13d-7{list-style-type:none}ol.lst-kix_ih7dq94nj13d-8{list-style-type:none}.lst-kix_n1jag4ojqie-8 > li{counter-increment:lst-ctn-kix_n1jag4ojqie-8}.lst-kix_v996nfe064bg-2 > li{counter-increment:lst-ctn-kix_v996nfe064bg-2}ol.lst-kix_ih7dq94nj13d-7.start{counter-reset:lst-ctn-kix_ih7dq94nj13d-7 0}.lst-kix_ih7dq94nj13d-8 > li:before{content:"" counter(lst-ctn-kix_ih7dq94nj13d-8,lower-roman) ". "}.lst-kix_ael0hoddpooj-1 > li{counter-increment:lst-ctn-kix_ael0hoddpooj-1}.lst-kix_ih7dq94nj13d-5 > li:before{content:"" counter(lst-ctn-kix_ih7dq94nj13d-5,lower-roman) ". 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"}.lst-kix_ael0hoddpooj-3 > li:before{content:"" counter(lst-ctn-kix_ael0hoddpooj-3,decimal) ". "}.lst-kix_924rz7bs0bp-0 > li:before{content:"- "}.lst-kix_ih7dq94nj13d-1 > li{counter-increment:lst-ctn-kix_ih7dq94nj13d-1}.lst-kix_qzx7ivkh6a1a-0 > li:before{content:"- "}.lst-kix_ael0hoddpooj-1 > li:before{content:"" counter(lst-ctn-kix_ael0hoddpooj-1,lower-latin) ". "}.lst-kix_ih7dq94nj13d-7 > li{counter-increment:lst-ctn-kix_ih7dq94nj13d-7}ol.lst-kix_n1jag4ojqie-4.start{counter-reset:lst-ctn-kix_n1jag4ojqie-4 0}ol.lst-kix_ih7dq94nj13d-4.start{counter-reset:lst-ctn-kix_ih7dq94nj13d-4 0}ol.lst-kix_ael0hoddpooj-0.start{counter-reset:lst-ctn-kix_ael0hoddpooj-0 0}.lst-kix_av9aw2o6p465-8 > li:before{content:"- "}.lst-kix_lszcylv4q9oz-0 > li:before{content:"- "}.lst-kix_lszcylv4q9oz-1 > li:before{content:"- "}ol.lst-kix_v996nfe064bg-4.start{counter-reset:lst-ctn-kix_v996nfe064bg-4 0}.lst-kix_lszcylv4q9oz-8 > li:before{content:"- "}.lst-kix_xrr50svp47g5-4 > li:before{content:"- "}ol.lst-kix_n1jag4ojqie-6.start{counter-reset:lst-ctn-kix_n1jag4ojqie-6 0}.lst-kix_lszcylv4q9oz-4 > li:before{content:"- "}.lst-kix_lszcylv4q9oz-5 > li:before{content:"- "}ol.lst-kix_ael0hoddpooj-1.start{counter-reset:lst-ctn-kix_ael0hoddpooj-1 0}.lst-kix_xrr50svp47g5-1 > li:before{content:"- "}.lst-kix_n1jag4ojqie-2 > li{counter-increment:lst-ctn-kix_n1jag4ojqie-2}ul.lst-kix_p3etpdfv1ql5-1{list-style-type:none}ul.lst-kix_p3etpdfv1ql5-0{list-style-type:none}.lst-kix_xrr50svp47g5-5 > li:before{content:"- "}.lst-kix_xrr50svp47g5-8 > li:before{content:"- "}.lst-kix_n1jag4ojqie-4 > li{counter-increment:lst-ctn-kix_n1jag4ojqie-4}ul.lst-kix_xqprltdsmkf5-0{list-style-type:none}ul.lst-kix_xqprltdsmkf5-1{list-style-type:none}ul.lst-kix_p3etpdfv1ql5-7{list-style-type:none}.lst-kix_xqprltdsmkf5-4 > li:before{content:"- "}ul.lst-kix_p3etpdfv1ql5-6{list-style-type:none}.lst-kix_bjryupavgk8c-2 > li:before{content:"- "}.lst-kix_xqprltdsmkf5-3 > li:before{content:"- "}ul.lst-kix_p3etpdfv1ql5-8{list-style-type:none}ul.lst-kix_p3etpdfv1ql5-3{list-style-type:none}ul.lst-kix_p3etpdfv1ql5-2{list-style-type:none}.lst-kix_bjryupavgk8c-3 > li:before{content:"- "}.lst-kix_v996nfe064bg-7 > li:before{content:"" counter(lst-ctn-kix_v996nfe064bg-7,lower-latin) ". 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"}.lst-kix_p3etpdfv1ql5-6 > li:before{content:"- "}.lst-kix_p3etpdfv1ql5-5 > li:before{content:"- "}ul.lst-kix_xqprltdsmkf5-2{list-style-type:none}ul.lst-kix_xqprltdsmkf5-3{list-style-type:none}ol.lst-kix_ih7dq94nj13d-0.start{counter-reset:lst-ctn-kix_ih7dq94nj13d-0 0}ul.lst-kix_xqprltdsmkf5-4{list-style-type:none}ul.lst-kix_xqprltdsmkf5-5{list-style-type:none}ul.lst-kix_xqprltdsmkf5-6{list-style-type:none}ul.lst-kix_xqprltdsmkf5-7{list-style-type:none}ul.lst-kix_xqprltdsmkf5-8{list-style-type:none}.lst-kix_xqprltdsmkf5-0 > li:before{content:"- "}.lst-kix_ld2wxmpep633-5 > li:before{content:"- "}.lst-kix_p3etpdfv1ql5-1 > li:before{content:"- "}.lst-kix_ld2wxmpep633-6 > li:before{content:"- "}ol.lst-kix_n1jag4ojqie-7.start{counter-reset:lst-ctn-kix_n1jag4ojqie-7 0}ul.lst-kix_5pnzu3hs9zr3-8{list-style-type:none}ul.lst-kix_5pnzu3hs9zr3-7{list-style-type:none}ol.lst-kix_ael0hoddpooj-8.start{counter-reset:lst-ctn-kix_ael0hoddpooj-8 0}ul.lst-kix_5pnzu3hs9zr3-0{list-style-type:none}ul.lst-kix_5pnzu3hs9zr3-2{list-style-type:none}ul.lst-kix_5pnzu3hs9zr3-1{list-style-type:none}ul.lst-kix_5pnzu3hs9zr3-4{list-style-type:none}ul.lst-kix_5pnzu3hs9zr3-3{list-style-type:none}ul.lst-kix_5pnzu3hs9zr3-6{list-style-type:none}.lst-kix_av9aw2o6p465-5 > li:before{content:"- "}ul.lst-kix_5pnzu3hs9zr3-5{list-style-type:none}.lst-kix_ld2wxmpep633-2 > li:before{content:"- "}.lst-kix_6n9sawdjleg-6 > li:before{content:"- "}.lst-kix_av9aw2o6p465-1 > li:before{content:"- "}.lst-kix_n1jag4ojqie-7 > li:before{content:"" counter(lst-ctn-kix_n1jag4ojqie-7,lower-latin) ". "}.lst-kix_ael0hoddpooj-8 > li{counter-increment:lst-ctn-kix_ael0hoddpooj-8}ol.lst-kix_v996nfe064bg-8.start{counter-reset:lst-ctn-kix_v996nfe064bg-8 0}.lst-kix_dgyl9pvju6mx-3 > li:before{content:"- "}.lst-kix_n1jag4ojqie-3 > li:before{content:"" counter(lst-ctn-kix_n1jag4ojqie-3,decimal) ". "}ol.lst-kix_ael0hoddpooj-5.start{counter-reset:lst-ctn-kix_ael0hoddpooj-5 0}.lst-kix_6n9sawdjleg-2 > li:before{content:"- "}.lst-kix_dgyl9pvju6mx-7 > li:before{content:"- "}.lst-kix_5pnzu3hs9zr3-1 > li:before{content:"- "}.lst-kix_5pnzu3hs9zr3-5 > li:before{content:"- "}.lst-kix_ael0hoddpooj-6 > li:before{content:"" counter(lst-ctn-kix_ael0hoddpooj-6,decimal) ". "}ol.lst-kix_ael0hoddpooj-6.start{counter-reset:lst-ctn-kix_ael0hoddpooj-6 0}.lst-kix_924rz7bs0bp-1 > li:before{content:"- "}ul.lst-kix_rk0oipmhjhyp-0{list-style-type:none}ul.lst-kix_rk0oipmhjhyp-1{list-style-type:none}.lst-kix_ael0hoddpooj-2 > li:before{content:"" counter(lst-ctn-kix_ael0hoddpooj-2,lower-roman) ". 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Lecture 3Don't forget about the age old question of Why does hobbes believe that the constitution is a bit of contradiction?

Price levels

• Measure cost of living

We also discuss several other topics like Who are the free african americans?

Inflation - increase in overall price levelWe also discuss several other topics like How are inequality and privilege related to each other?

Deflation - decrease in overall price level

Inflation rate (): percentage change in the price level from one period to the next

         = %P = If you want to learn more check out Whata re the characteristics of water when cohesiveness is present?

GDP deflation  = x 100Don't forget about the age old question of What is the formula for molality?

In base year, nominal GDP = real GDP so GDP deflator = 100

Don't forget about the age old question of How are vascular plants characterized?

Consumer price index (CPI)

• Used commonly for cost - of - living adjustments (COLA’s)
• Fixed basket for consumer goods (2 apples and 5 bananas)

Base year                        this year

Apple $.50                        $.75 → 2.75

Banana $.20                        $25

CPI =  x 100

CPI =  x 100 = 137.5

GDP deflator

• All goods
• Domestically produced goods
• All goods that are produced
• Weights of goods change as production changes

CPI

• Only consumer goods
• Includes imported goods
• Subset of goods
• Fixed weights
• Tends to overestimate inflation because

1. Lack of substitution
2. Intro of new goods
3. Quality differences

Core inflation = CPI excluding agricultural products and energy

Producer price index: cost of a basket of intermediate goods

Personal consumption expenditures (PCE)

Deflator

        Y = C + I + G + NX

 x 100

Unemployment = number of workers in the economy without a job

• Gauge of how well an economy uses its resources

Unemployment rate (u):

Number in labor = number of unemployed + number of unemployed force

• Correct unemployment rate

The Bureau of Labor Statistics (BLS) uses…

1. Current population survey: monthly survey of 60,000 households every 16 + age is place into:

1. Employed
2. Unemployed: no job but searching in last 4 months
3. Out of labor force

        Jan 10th: Dec 2019

1. Establishment survey: survey of non - farm firms

142, 000 firms - employ “3 of all US workers

Non - farm payroll numbers = + 145,000

Chapter 3

National income = total output (y)

• Real terms

Factors of production

• Labor (l) capital (k)

Technology = how inputs are converted to output

• If have better technology produce better and more

Production function = y = F(K,L)

Long - run macro model

Assumptions

1. All markets are perfectly competitive
2. Prices are completely flexible
3. Closed economy
4. Full - employment of all factors

        L = I         K = K

1. Constant returns to scale production function

• Increase both factors by same percentage = produce twice amount of output

F(zK, zL) = zY

Y = F(K,L) = Y - fixed for any given amount of L and K and technology

• Only way to produce more output to increase labor, capital or technology

Lecture 4

National (Real) income = Total output (y)

In long - run (y = (L,K) = Y - output is fixed for any given K,L and level of technology

Nominal wage (w)

• How much a worker earns in monetary terms

Real wage

• How much you can buy with wage earned from labor

Nominal rental of capital (R)

Real rental of capital

Cheaper worker become, more will be used

Representative firm

         = P x Q - W x L - R x K

Firms… does not choose price, R or K

• Choose W and L which implicitly chooses Q (output)

References: