文档介绍：Intermediate Macroeconomics
Lecture 3
Topics
Finish the assignment from last class
Clarification for 4 questions from last class
Demand for goods and services
Equilibrium and the interest rate
Assignment
Cobb-Douglas production function
1. What is MPL?
2. What is the relationship between labor
e and total e?
Assignment
What is the shape for MPL?
Assignment
Labor e share
Labor e:
Inventories
In 2002, firm A produced 1000 pc. 800 sold at $1000 each, 200 e inventories.
What happened to GDP in 2002?
If the 200 inventories were sold at $1500 each in 2003, what happened to GDP in 2003?
CPI deflator
CPI may overstate inflation
(sorry! not always )
When it really overstates inflation, comparing to the GDP deflator, we should look for reasons from where it differs from the GDP deflator, right?
CPI deflator
CPI deflator
Inflation
or
CPI deflator
3 differences between CPI & GDP deflator
Therefore, it might be
1. Basket has more expensive goods
2. Goods included in the basket have higher weights than in the real world
(due to technological improvement)
3. Imports have sky rocketing price
☆☆ Statistics bureaus change basket (types of goods and their weights) now and then