Macroeconomics Living Standards

1. line the GDP legal injury index. Identify the person(s) who gave this idea.A GDP price index is a measure of the price of a condition collection of goods and services in a given year as compared to the price of an identical or highly similar collection of goods and services in a reference year.William Stanley Jevons (1835-1882) provided the earliest contribution to the maturement of index numbers. Later Wesley Clair Mitchell (1874-1948) contributed broader efforts to gather statistical selective information and improve economic experts ability to assess economic well-being.2. Define find the concept and measurement of Business Cycles. Identify the person(s) who gave this idea.Economy normally goes through a serial of cycles, of booms and depressions condition. For example, a slowing business activity may undergo revitalisation activity which in bring out results in business prosperity, prosperity then may breed economic crisis, economic crisis then leads to depression, afte r a long period of depression it may then go back to some revival activity which goes back to the same cycle. Business cycles could represent the most serious of economic instability. Survey data and cyclical indicators are the most effective measurements of business cycles. This would allow prediction of economic crisis for pr pull downtion purposes.The economist who contributed the most to this idea of business cycles is Wesley Clair Mitchell (1874-1948). John Maynard Keynes formalized the analysis of business cycles.3. Define the idea of palpable interest rate. Identify the person(s) who gave this idea.The real interest rate is calculated from the nominal rate of interest, change for compounding, minus the inflation rate. Real interest rate is will depend primarily on the inconstant inflation rates which poses some risk on borrowers and lenders.The person who gave meaning to real interest rates was Irving Fisher (1867-1947). The increase in nominal interest rates in anticipati on of inflation is even called as Fisher Effect because of his contribution.4. Indicate who first advanced the modern theory of business cycles and where he taught.John Maynard Keynes contributed the most on the advancement of modern theory of business cycles. He lectured in Cambridge.ReferencesC. MacConnell, S. Brue (2005). economic science Principles, Problems, and Policies, 16/e. Origins of Idea (Chapter 7). Retrieved January 7, 2007 fromhttp//highered.mcgraw-hill.com/sites/0072819359/student_view0/chapter7/origin_of_the_idea.htmlC. MacConnell, S. Brue (2005). Economics Principles, Problems, and Policies, 16/e. Origins of Idea (Chapter 8). Retrieved January 19, 2007 fromhttp//highered.mcgraw-hill.com/sites/0072819359/student_view0/chapter8/origin_of_the_idea.html