Fundamentals of Economy and Microeconomy

INTRODUCTORY
CLASS

Synchronous class
14th – 19th February

Professor: Nelson David Bolivar Email: nelson.bolivar@iudigital.edu.co

Learning objectives
1-1 Virtual classroom
1-2 What is the economy all about
1-3 Application: Real vs Nominal prices
1-1 Virtual Platform
1-2 Micro vs Macro economics
 Entidad como sistema
Materiales
Camión Camión
Comercio
Estiba Estiba

Caja
Caja
Conjunto de empresas e individuos que se
Ítem
Ítem interrelacionan para prestar un servicio o entregar un
producto

Almacén
Fábrica ACH
Agente
Banco Compensador Banco Consumidor
Materia Prima
Información
 1-3 Real vs Nominal prices
The nominal price of a good (sometimes called its “current-dollar” price) is
its absolute price. For example, the nominal price of a pound of butter was about
$0.87 in 1970, $1.88 in 1980, about $1.99 in 1990, and about $3.42 in 2010.
1-3 Real vs Nominal prices
1-3 Real vs Nominal prices
 1-3 Real vs Nominal prices
The real Price of a good (sometimes
called its “constant-dollar” price) is
the price relative to an aggregate
measure of prices. In other words,
it is the price adjusted for
inflation.
Example: Butter
After correcting for inflation, do we find that the price of butter was more
expensive in 2010 than in 1970?
 0.89

In real terms, therefore, the price of butter was lower in 2010 than it
was in 1970.5 Put another way, the nominal price of butter went up
by about 293 percent,
 GRACIAS

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