1. Principles of Macroeconomics ECON 401 Dr. Andrew L. H. Parkes “A Macroeconomic Understanding for use in Business” 卜安吉

2. Principles of Macroeconomics, Day 22 Finish Chapter 23 NIPA Accounts – Income and Expenditures – real GDP, more next week NIPA Accounts – Income and Expenditures – real GDP, more next week Growth rate calculations Growth rate calculations The required textbook

3. Principles of Macroeconomics, Day 23 Chapter 23 continued Midterm Exam: Values of the indicators of the 3 Goals of Any Macroeconomy Midterm Exam: Values of the indicators of the 3 Goals of Any Macroeconomy For example: 8.7% for the CPI for China For example: 8.7% for the CPI for China Problem Set #1: Do Question #1, Question #2 a) and b) Problem Set #1: Do Question #1, Question #2 a) and b) Problem Set #2 is on the webpage, download it and complete it for next class. Problem Set #2 is on the webpage, download it and complete it for next class. Federal Reserve did what?

4. Principles of Macroeconomics, Day 24 Chapter 24 Pay attention to the definition of the CPI in class! Pay attention to the definition of the CPI in class! CPI in U.S. is what? CPI in U.S. is what? Cost of Living is measured by the CPI Cost of Living is measured by the CPI U.S. Department of Labor Bureau of Labor Statistics http://www.bls.gov/cpi/

5. Principles of Macroeconomics, Day 25 SEE MY WEBSITE: andrewparkes.com 1. Substitution Bias 2. Introduction of new goods 3. Unmeasured quality changes 4. Typical Average Family Four problems with using the CPI for a Perfect measure of a COLA