Economics for Economics for Business II Business II Day 11 – Some values (numbers) Day 11 – Some values (numbers) Dr. Andrew L. H. Parkes Dr. Andrew L. H. Parkes “ “ A Macroeconomic Understanding for use in Business” A Macroeconomic Understanding for use in Business” 卜卜卜 卜卜卜
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Economics for Business II Day 11 – Some values (numbers) Dr. Andrew L. H. Parkes “A Macroeconomic Understanding for use in Business” 卜安吉.
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Economics for Business Economics for Business IIII
Day 11 – Some values (numbers)Day 11 – Some values (numbers)
Dr. Andrew L. H. ParkesDr. Andrew L. H. Parkes““A Macroeconomic Understanding for use in A Macroeconomic Understanding for use in
Business”Business”
卜安吉卜安吉
April 28, 2013April 28, 2013 BECO II, Day 11BECO II, Day 11 22
Growth in PricesGrowth in Prices Inflation – 6.2% over the Inflation – 6.2% over the
past year to Aug.past year to Aug. What is the effect on What is the effect on
wages? wages? In the U.S., the In the U.S., the
minimum wage rate is minimum wage rate is $7.25, what was the $7.25, what was the real wage during the real wage during the past year at 6.2% past year at 6.2% inflation?inflation?, http://www.bloomberg.com/news/2011-09-11/china-strength-defies-hard-landing-scenario.html
OLD NUMBERS –
What are today’s?
April 28, 2013April 28, 2013 BECO II, Day 11BECO II, Day 11 33
CPI and GDP deflator CPI and GDP deflator HistoricallyHistorically
April 28, 2013April 28, 2013 BECO II, Day 11BECO II, Day 11 44
Industrial ProductionIndustrial Production A monthly measure of the A monthly measure of the
economic growth goaleconomic growth goal– Increased at 13.5% rate Increased at 13.5% rate
last month was 14% y-o-ylast month was 14% y-o-y
OLD NUMBERS! From FALL – today’s????OLD NUMBERS! From FALL – today’s????
Expectations are for Expectations are for economic growth at about economic growth at about 8.4% (down from the first 8.4% (down from the first half growth of 9.6%)half growth of 9.6%)
April 28, 2013April 28, 2013 BECO II, Day 11BECO II, Day 11 1515
Trade SurplusTrade Surplus
Also recently announced were the higher Also recently announced were the higher than expected Chinese import and than expected Chinese import and export numbers for August.export numbers for August.
However, the trade surplus was $17.76 However, the trade surplus was $17.76 billion, lower than expected!billion, lower than expected!
The median forecast was for $24.6 billion The median forecast was for $24.6 billion after a gap of $31.5 billion in July!after a gap of $31.5 billion in July!
April 28, 2013April 28, 2013 BECO II, Day 11BECO II, Day 11 16161616
Chapter 23Chapter 23
Pay attention to the Pay attention to the definition of the CPI definition of the CPI in class! – in class! – “Urban Market “Urban Market Basket”Basket”
What is the CPI in What is the CPI in U.S.? In China? -U.S.? In China? - AssignmentAssignment
The Cost of Living is The Cost of Living is measured by the CPImeasured by the CPI
U.S. Department of LaborBureau of Labor Statistics
http://www.bls.gov/cpi/
April 28, 2013April 28, 2013 BECO II, Day 11BECO II, Day 11 17171717
Cost of Living AdjustmentCost of Living Adjustment
1.1. Substitution BiasSubstitution Bias
2.2. Introduction of new Introduction of new goodsgoods