Tuesday, January 25, 2011

Post 25 and then some

I learned this in history a while back but when it comes to inflation people who benefit either way are merchants or business men. The reason why makes sense, since they have a product or service to sell if inflation happens they can just raise prices to keep up. Either way money is circulating around them so they are able to adapt to the change and that would have them with more money in their pockets.

How bout that Gini index
   After seeing how the U.S. is in the mid to high 40's (2007ish) and with 1 being the complete like monopoly with one guy owning it all and such all I can say is at least it anit like communism right where a Dr. or uranium scientist gets as much as the dude cutting your grass or somewhere along those lines. That be a yeah and no idea but its only sounds good on paper. You need the rich people to invest and start business and compete with one another that how prices can be lowered for the consumer.

Post 24

Frictional employment: I work for an accounting firm in Philly for 6 years this experience allows me to become a head accountant that monitors other accountants. I apply and get accepted at a fortune 500 company the pay is greater than the firms pay I move up the ladder in my career.

Structural employment: After graduating college with an PHD and what not in accounting I qualify to become a head fortune 500 company head accountant  fresh out of college. Since there is so many fortune 500 companies many who already have employed and experienced head accountants I become structurally unemployed or have o move down the ladder quite a bit until the position opens up.

Cyclical employment: After being a assembly line mechanic for uh Ford, Chevy, GMC and all in 40 years experience since the companies had to layoff workers in 2007-2009 because of the recession to save the head CEO's and other executives oh yeah and the brands themselves they laid off me and some buddies who been working since '68 now I've been cyclically unemployed for quite some time now.

Seasonal employment: I'm a landscaper in NJ and I make money cutting peoples grass, hedges and planting flowers keeping the yard nice and green and what not. Since winter came around all my work is like dead so now I work as a snow plower. Since my job changes with the season I an Seasonally employed.

I found it post 20

Q#1 National income accounting tracks consumption , income and production in a nations economy.
Q#2 real GDP is current GDP it happens in the same year.
Q#4 Gross nation product 

Q#1 Gross domestic product is the most commonly used national income and product account.
Q#2four sectors of the product market combine to make up GDP
Q#6 high levels of business investment promote expansion in the business cycle.

Q#2 to avoid double counting economist  use a value added approach A.
Q#3 Economist create a price index by D.
Q#4 GDP figures are inaccurate because D.
Q#5 B expansion describes economic growth in the business cycle.
Q#8 D is an example of a lagging indicator.

Q#1 D nation income accounting tracks production income and consumption in an economy.
Q#2 B nominal GDP is expressed in current prices of a period of time being measured.
Q#4 K GDP is the total dollar value of all final output produced with factors of production owned by residents of a given country during a year.
Q#12 Capital deepening is an increase in the amount of capital gods available per worker.

Wednesday, January 19, 2011

Post 22

15 Things I've learned...

Aggregate is the supply is the total amount of goods and services produced throughout the economy.
A supply shock is an event that increases the cost of production for all or many firms.
To construct the consumer price index, the Bureau of Labor Statistics selects a sample of commonly purchased consumer items, called the market basket.
The worst degree of inflation is hyperinflation.
To measure price level economist construct a price index.

Frictional unemployment attribute to workers moving from one job to another.
Marginally attached workers are workers who once held productive jobs but have given up looking for work.
Census Bureau conducts a monthly study called the Current Population Survey. \
Unemployment rate is the most closely watched and highly publicized labor force statistic. 
People who wanted jobs but have stop looking for work because of job related reasons are discouraged workers. 

In the 90's the income gap was largest since WWII
Poverty thresholds are adjusted annually from change in the consumer price index.
To measure inequality in income economist plot a Lorenz curve. 
The data used to plot a Lorenz curve is used to Compute the Gini index.
Heavy corporate downsizing in the 80's and 90's led to a large unemployment rate.

Post 21

Book + Internet blogger = ???
Page 235
national income accounting - Process of tracking the sum of employess' and proprietors' income, real and estimated rental income, corporate profits, and net interest.
gross domestic product- total dollar value of all final goods and services produced within a country during one calender year.
output expenditure model - formula expressed by C+I+G+(X-M) = GDP
personal consumption expenditure- are durable and non durable goods and services.
Gross investment- total value of all capital goods produced in a given nation during one year as well as changes in the dollar value of business inventories.
nominal GDP- GDP expressed in the current prices of the period being measured.
real GDP- GDP adjusted for price changes.
price index- a set of statistics that allows economist to compare prices over time.
underground economy- illegal activities and unreported legal activities.
Gross national product- total dollar value of all final output produced with factors of production owned by residents of a country during that one year.

Page 240

Business cycles- fluctuations, or changes, in a market system's economic activity.
expansion- a period in which the economy experiences growth.
peak- a high point in the economy when it is most prosperous.
contraction- a period in business cycles when business slowdown.
recession- decline in real GDP for more than six months or two quarters.
depression- severe recessions
trough- final stage in the cycle when demand, production, and employment reach their lowest levels.
leading indicators- anticipate direction in which the economy is headed.
coincident indicators- change as the economy moves from one phase of the business cycle to another tells of the up or downturn of the economy.
lagging indicators- change months after the up or downtown turn in the economy.

Page 246

Real GDP per capita- an increase in the real dollar value of all final goods and services.
Labor productivity- a measure of how much each worker produces in a given time period.
Productivity growth- an increase in the output of each worker per hour of work.
Capital to labor ratio- the amount of capital stock available per worker.
capital deepening-an increase in the amount of capital goods available per worker.

Tuesday, January 11, 2011

post 18

Post 18 I used  cybraryman's link"http://cybraryman.com/economic.html" and on his webpage were helpful links on economics. It ranges from information about jobs in business to teaching the subject of economics trough useful sites. It even has price index and inflation caculators. These three sites were what I picked to use on the mid term.

On this site selecting 6-12 concepts will have terms and concepts available that we went over I find it useful to use.

This link will take you straight to the lessons and from selecting a title on subjects like price index GDP things we covered the last couple chapters.

It's pretty straight foward in the information it provides I recommend using it as an overview first to break into the subject and the first two links to get into details about economics.

Thursday, January 6, 2011

Explaining theories of business cycles

Post 17


The graph above is'nt really detailed, it's really simple and plain that it doesn't have any way of reading it. If you know how to read this...pat yourself on the back.

Now this one is straight to the point, simple, and it's enough to get to the point it is good. The only thing is that the business cycle is just more than a Recovery, expansion, downturn and recession.

This is the lord all mighty god lord when it comes to economic/ business cycle, not only is it straight to the point, easy to read, simple and detailed. This should be the foundation when it comes to teaching the cycle.

Wednesday, January 5, 2011


Calculating GDP

GDP = C + G + I + NX
NX = total nation exports - total nations imports
C= sum of spending
G= sum of government spending
I= sum of business spending/ investments

Macro v.s. Micro

Tuesday, January 4, 2011

Economic indicators

Leading Coincident and lagging economic indicators

Leading indicators tell of changes before the economy reacts to the changes as an whole. "Leading indicators are used as a short term predictors of an economy."(wikipedia.org)
-stock market returns
-consumer expectations
-money supply
are leading indicators

Coincident indicators change around the same time the economy changes itself, it provides current information about the current economy.
-Gross Domestic Product (GDP)
-industrial production
-personal income
are Coincident indicators

Lagging indicators are changes after the economy has changed, the lag remains a few quarters of the year.
-unemployment rate
-average prime rate charged by banks
-manufacturing trade to sales inventories
are lagging indicators