2. Secret auction

3. Let’s double the money supply

5. Candy auction

6. Grading schemes you have seen here
at Pueblo?
Klein – base 10, X/10, exams: X/42
 Crane ?
NOMINAL
 Santa Cruz?
 Ayala?
DIFFERENCE?
 Wallace?
 Science?


7. REAL VS. NOMINAL
CHANGE

Nominal GDP : change in numbers
usually a %
 “Raw data”
Real GDP : Change after inflation
 Real = Nominal – Inflation rate

Real interest change
 Real income changes


9. Lets practice
Nominal GDP grew by 10%, WOW!
 CPI: 7.9% Real GDP = ???

Nominal Raise: 3%, YEAH!!!!!
 CPI: 3.2%

Interest Rate on fixed rate mortgage: 4 %
 CPI: 2.3 %


11. GDP Deflator
Nominal GDP
Real GDP
X 100 = ___________ %

13. Mankiw Review OR
WORKSHEET

Page 510 #1, 2, 4, your choice: 5 or 6