MankiwEconomicsChap23中山大学吴柏林教授〔曼昆·经济学原理〕绝密资料.ppt

* * 11 * 10 * 12 * 13 * 14 * 15 * 16 * 17 * 18 * 19 * 20 * 20 * 2 * 23 * 26 * 28 * * 24 * 29 * 30 * 31 * 3 * * * * * 10 * 2 * 3 Dollar Figures from Different Times Do the following to convert (inflate) Babe Ruth’s wages in 1931 to dollars in 1995: Dollar Figures from Different Times Do the following to convert (inflate) Babe Ruth’s wages in 1931 to dollars in 1995: The Most Popular Movies of All Time, Inflation Adjusted Indexation When some dollar amount is automatically corrected for inflation by law or contract the amount is said to be indexed for inflation. Real and Nominal Interest Rates Interest represents a payment in the future for a transfer of money in the past. Real and Nominal Interest Rates The nominal interest rate is the interest rate not corrected for inflation. It is the interest rate that a bank pays. The real interest rate is the nominal interest rate that is corrected for inflation. Real interest rate = (Nominal interest rate – Inflation rate) Real and Nominal Interest Rates You borrowed $1,000 for one year. Nominal interest rate was 15%. During the year inflation was 10%. Real interest rate = Nominal interest rate – Inflation = 15% - 10% = 5% 1965 Interest Rates (percent per year) 15 10 5 0 -5 1970 1975 1980 1985 1990 1995 1998 Nominal interest rate Real interest rate Real and Nominal Interest Rates Summary The consumer price index shows the cost of a basket of goods and services relative to the cost of the same basket in the base year. The index is used to measure the overall level of prices in the economy. The percentage change in the CPI measures the inflation rate. Summary The consumer price index is an imperfect measure of the cost of living for the following three reasons: substitution bias, the introduction of new goods, and unmeasured changes in quality. Because of measurement problems, the CPI overstates annual inflation by about 1 percentage point. Summary The GDP deflator differs from the CPI because it includes goods an