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Week 9 Notes

by: Abigail Johnson

Week 9 Notes ECN 222 - 005

Abigail Johnson
GPA 3.59
Adam Talbot Jones

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About this Document

Only Monday's notes (03/14/16)
Adam Talbot Jones
Class Notes
25 ?




Popular in Macroeconomics

Popular in Economcs

This 2 page Class Notes was uploaded by Abigail Johnson on Wednesday March 16, 2016. The Class Notes belongs to ECN 222 - 005 at University of North Carolina - Wilmington taught by Adam Talbot Jones in Spring 2016. Since its upload, it has received 24 views. For similar materials see Macroeconomics in Economcs at University of North Carolina - Wilmington.


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Date Created: 03/16/16
31616 253 PM MONDAY MARCH 15 Apia assignment on GDP due Wed night Ch15 on unemployment on BB Apia for Ch15 too CPI Motivation 0 cost of livingquot adjustments COLAs o RGDP Calculate CPI 1 Fix the basket i BLS bureau of labor stats surveys consumers to determine what s in the typical consumer s shopping basketquot 2 Find the prices Compute the basket s cost 4 Choose a base year and compute the index i cost of basket in current yrcost of basket in base yr 100 5 Compute the inflation rate i Inflation rate CPI this year CPI last yearCPI last year 100 Core Inflation Underlying Inflation All items less energy and food 0 Less noisy than headline Headline Inflation All CPI items Imports are only 18 of GDP 9 housing is 43 of expenditure so the majority is domestic 80000 items in the CPI basket U Basket index example 310 311 312 CPI currentbase 100 CPIlo 6060100 100 CP111 6960100 115 9 115100100 100 15 CP112 7860100 130 9 130115100 100 13 2nd index example per lb 310 4beef 4chicken 311 5beef 5chicken 312 9beef 6chicken CPI2010chicken 44 100 100 CPI2010beef 44 100 100 CPI2011chicken 54 100 125 e 25 Cplzomeef 54 100 125 e 25 CPI2012chicken 94 100 225 e 100 CPI2012beef 64 100 150 9 10Ibsbeef and 20bs chicken CP12011150120100 125 CPI2012 2101201oo 175 e 175125125 100


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