New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Sixth Week of Notes

by: Morgan Genelin

Sixth Week of Notes ECON2020

Marketplace > University of Colorado > Economcs > ECON2020 > Sixth Week of Notes
Morgan Genelin
GPA 3.97

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

February 23/25, 2016
Principles of Macroeconomics
Murat Iyugan
Class Notes
25 ?




Popular in Principles of Macroeconomics

Popular in Economcs

This 2 page Class Notes was uploaded by Morgan Genelin on Tuesday March 22, 2016. The Class Notes belongs to ECON2020 at University of Colorado taught by Murat Iyugan in Winter 2016. Since its upload, it has received 43 views. For similar materials see Principles of Macroeconomics in Economcs at University of Colorado.


Reviews for Sixth Week of Notes


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 03/22/16
February 23, 2016 EXPERIMENT QUIZ February 25, 2016 Continuing off of the list from last week 4. Short term unemployment a) Cyclical: switch between jobs a. When above the 5% average, this is the cause and that is bad b) EXAMPLE: a. At least ½ unemployment rate is chronic unemployment i. 100 people story: 1 chronic, 12 unemployed 1 each month 1. 2%, 1% caused by the chronic 5. Nominal (W) vs. Real Wages (W/P) a) Nominal wage rate a. Given unit of time of work b. it is a upper case W b) Real Wage a. Use P (CPI of a point in time i.e. the price of living) i. Used more often to see real wage worth  ii. W/P or lowercase W 6. Cost of Inflation P (t+1 −P(t) a) ∗100=π  (This is the inflation RATE) P(t) a. P is CPI again. P(t) is today, P(t+1) is tomorrow  b) Expected inflation a. Opportunity to prepare for this inflation b. The expected costs are just small changes i. Cost of carrying money in high inflation countries is huge 1. Always put in a savings to gain interest c) Unexpected inflation a. BAD b. Borrowers win, lenders loose i. Only if you get a nominal interest rate (doesn’t change) 7. Nominal vs. Real Interest Rates a) Nominal: lower case I a. D(t) is deposit of “today”, D(t+1) is deposit tomorrow 1+i ∗D(t)=D(t+1) b. i. Doesn’t give the cost of inflation or anything like that b) Real: lower case r a. #goods you consume tomorrow= #goods today D t+1 ) ( 1+i∗D(t) i. P(t+1) = 1+π ∗P(t)  (These are the equations related to  those words above.) ii. SO for REAL interest rates: D (t+1 ) D(t) 1. = (1+r) P(t+1) P(t) b. i = r + π  i. As long as all are small. This is the Fisher Equation 


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Anthony Lee UC Santa Barbara

"I bought an awesome study guide, which helped me get an A in my Math 34B class this quarter!"

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.