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Measurement of Economic Performance Videos 6 videos
AP Macroeconomics 1.1 Measurement of Economic Performance. How do we measure net Domestic Product?
AP Macroeconomics 1.6 Measurement of Economic Performance. Which is true of the basic two sector economy in the circular flow of income model?
AP Macroeconomics 1.10 Measurement of Economic Performance. Greece has a sudden and surprising number of people who emigrate to Turkey. What is the...
AP Macroeconomics 1.2 Measurement of Economic Performance 20 Views
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AP Macroeconomics 1.2 Measurement of Economic Performance. What is inflation?
Transcript
- 00:00
Thank you We sneak and here's your shmoop du jour
- 00:05
brought to you by inflation which is the reason that
- 00:08
cost of balloons keep going up not to mention the
- 00:10
balloons themselves Alright What's inflation and hear potential answers All
- 00:15
right This is inflation and this is inflation And this
Full Transcript
- 00:22
is inflation Well not sure what it is Okay specifically
- 00:26
it is a rate at which the prices on goods
- 00:29
and services increase Usually yes but on an annualized basis
- 00:34
Well this holiday season when your grandmama's ask her what
- 00:37
she paid for her house This one the one she
- 00:40
bought fifty two years ago The one with the bathroom
- 00:42
door knob that it always falls off Yet she bought
- 00:45
it for eight grand about what you pay now for
- 00:47
a six year old prius The house would sell today
- 00:50
for three hundred grand Why That part of town suddenly
- 00:54
get more valuable No not at all It's the same
- 00:58
It increased in value at the same rate as inflation
- 01:02
So it's real value is about the same as it
- 01:04
was back Lynn fifty two years ago An average worker
- 01:08
made a thousand bucks a year Today that same average
- 01:11
Worker makes thirty seven point five grand a year And
- 01:14
guess what The home back then sold for eight times
- 01:17
the average worker's salary And well guess what Today it
- 01:21
sells for eight times the average worker's salary Right back
- 01:24
to the answer Inflation is an increase in prices not
- 01:28
just a change So is out See really foreign currency
- 01:33
How about asking if it refers to the sound loose
- 01:35
skywalker's lightsaber makes when he turns on the power random
- 01:39
All right d increased purchasing power No the opposite If
- 01:43
you have lots of inflation a dollar goes less far
- 01:46
than it used to Remember that wheelbarrow full of german
- 01:49
marks right there their currency back then before the euro
- 01:52
it used to take one of those paper bills to
- 01:54
buy a loaf of bread and inflation struck and well
- 01:58
you know start eating stagflation No it's Not about breeding
- 02:02
kentucky derby winners Stagflation refers to a specific element of
- 02:07
inflation where prices go up But employment does not And
- 02:11
yeah it's a bad thing unlike the breeding scenario Okay
- 02:16
so that's it The answer is b increase in prices
- 02:19
we dread the day that balloons will eventually cost twenty 00:02:21.603 --> [endTime] Bucks Each that's really gonna burst our bubble
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