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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Nadine Carroll who wrote (73885)	1/17/2000 4:30:00 PM
From: Skeeter Bug	Respond to of 132070

>>So for the CPI calculation, the price of computers fell by 50%. But for the GDP calculation, the production of computers rose by 100% (assuming the same dollar level of sales YOY).<< sounds fair to me ;-)

To: Nadine Carroll who wrote (73885)	1/17/2000 5:35:00 PM
From: Don Lloyd	Respond to of 132070

Nadine - [[...So let me see if I understand this. Let's say that last year I paid $1000 for a 200MHz machine, and this year I paid the same $1000 for an equivalent 400MHz machine (to keep it simple). so for the CPI calculation, the price of computers fell by 50%. But for the GDP calculation, the production of computers rose by 100% (assuming the same dollar level of sales YOY).]] But you're not accounting for the 2X DRAM and the 2X hard disk storage. So the price really fell by 87.5% and the GDP component grew by 700%. And that's not even allowing for any Microsoft innovation, or at least bloat. -g- Regards, Don