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Macro 4
- 2. Macroeconomics Lecture 4 Measuring a Nation’s Income
- 3. Questions?
- 4. 54 cents
- 5. iPhone One iPhone 8 Change Chip 412 MHz 600 GHz 1,456 x RAM 128 MB 3 GB 23x Storage 4 GB 64 GB 16x Camera 2MB 12MB 6x Display 320 x 480 1334 x750 6.5 x 2007 2017
- 7. 1930 5 cents 10 cents per hour 2012 $1 dollar $8 per hour 75 Percent Cheaper 30 minutes 7.5 minutes
- 9. How much time will it cost me?
- 10. 12 item food basket 1919 9.8 hours 1997 1.9 hours - 80%
- 11. Air Conditioner 1952 213 hours 1997 23 hours - 90%
- 12. Refrigerator 1916 3,162 hours 1997 68 hours - 98%
- 13. Clothes Washer 1911 553 hours 1997 26 hours - 95%
- 14. Gallon of Gasoline 1920 34 minutes 1997 6 minutes - 82%
- 15. Contact Lenses 1971 95 hours 1997 4 hours - 96%
- 16. NewYork to Los Angeles Flight Time Price 1930 366 hours 1997 16 hours - 96%
- 17. Big Mac 1940 27 minutes 1997 9 minutes - 67%
- 18. Color TV 1954 562 hours 1997 23 hours - 96%
- 19. Microwave Oven 1967 176 hours 1997 15 hours - 91%
- 20. Phone call NewYork to Los Angeles 1915 90 hours 1997 1 second - 99.99%
- 22. Recession Two consecutive quarters of negative growth
- 23. Depression A long and severe recession
- 24. U.S. GDP
- 25. U.S. GDP Growth Rates %∆
- 26. U.S. GDP Growth Rates %∆
- 27. GDP per Capita GDP Number of People
- 28. GDP $75 trillion Population 7.5 billion GDP Per Capita $10,000
- 29. GDP per Capita compare across countries
- 30. GDP $18.5 trillion Population 323 million GDP Per Capita $57,275 United States Per Day $157
- 31. GDP $11 trillion Population 1.4 billion GDP Per Capita $7,857 Per Day $21 China
- 32. GDP $2.26 trillion Population 1.32 billion GDP Per Capita $1,710 Per Day $4.68 India
- 33. GDP $305 billion Population 103 million GDP Per Capita $2,961 Per Day $8 Philippines
- 34. GDP $1.4 trillion Population 51 million GDP Per Capita $27,537 Per Day $75 South Korea
- 35. GDP $16 billion Population 25 million GDP Per Capita $640 Per Day $1.75 North Korea
- 36. Two Koreas GDP $1.4 trillion 16 billion Population 51 million 25 million GDP per Capita $27,537 $640 Per Day $75.44 $1.75
- 37. GDP Per Capita Saudi Arabia $25,000 India $1,500 Pakistan $1,261 Bangladesh $800 16.7 times more 19.8 times more 31.2 times more
- 41. Is GDP per capita the best way to compare countries? What if prices are different?
- 42. Purchasing Power Parity PPP A theory of exchange rates whereby a unit of any given currency should be able to buy the same quantity of goods in all countries
- 43. Purchasing Power Parity PPP Identical products should sell for identical prices
- 44. Purchasing Power Parity PPP Should cost the same around the world
- 45. 1.00 = 6.55 0.15 = 1.00 5.00 = ? 5.00 = 32.75
- 46. $5.00 ¥ 19.80 ¥ 32.75 $3.00 40% cheaper in China x 6.55 ÷ 6.55
- 47. Turn $3.00 into $5.00
- 48. Measuring the Cost of Living
- 49. Measuring the Cost of Living GDP Deflator Consumer Price Index Interest Rates
- 51. GDP increases Are we making more stuff, or are prices going up?
- 52. Nominal vs. Real
- 54. When you have lines waiting to buy your product, you can do two things: make more, or raise prices