Chapter 2. The Data of Macroeconomics

Homework: pp. 41-42: #2, 6, 8

Link to syllabus

Fig. 2-1 p. 19. The Circular Flow

Fig 2-2 p. 20. Stocks and Flows

Other Text. Value Added in a five-stage process

Table 2-1 p. 29. GDP and its Major Components, 2007

GDP by Sector: Statistical Abstract

of the U.S.

GDP, $billion

Link to US National Accounts

NIPA on GDP <http://www.bea.gov/bea/dn/home/gdp.htm>

Relationship of GDP, GNP, National Income, etc. http://www.bea.gov/bea/dn/nipaweb/SelectTable.asp?Popular=Y

Data on US Real and Nominal GDP

http://www-personal.umd.umich.edu/~mtwomey/econhelp/301files/NIPARealGDP.xls

Bat

Other Text

The Nominal and Real Price of a First-Class Letter

Fig. 2-3 p. 34. Changes in the CPI and in the GDP Deflator

(Point is that the two price indexes move in tandem).

Fig. 2-4 p. 38. US Population and Labor Force, 2011

Labor Force = 139.6 + 14.0 =153.6

Unemployment rate= (14.0/153.6)x100= 9.1 %

Alternate measure:Labor Force Part. Rate=Labor Force/Population=(153.6/239.9)x100=64%

Unemployment was 9% in 2012.

The labor force, employment and unemployment, 2002

Unemployment rate was 8.3/142 or 5.8%. In 2000 it was 4%.

McConnell/Brue text!

Figure 2-5 p. 39. Labor Force Participation Rates

(Major change in US society since WWII).

Gini Coefficient of Inequality of the Distribution of Income, US

Source: US Department of Commercehttp://www.personal.umd.umich.edu/~mtwomey/econhelp/301files/Y-Dist.xlsx

2010

2006

2002

1998

1994

(24)

1990

1986

1982

1978

1974

(16)(

15)

1970

1966

(11)

1962

(9)

1958

1954

1950

0.0000.0500.1000.1500.2000.2500.3000.3500.4000.4500.500

Pre-Fisc

Post-Fisc Ratio

Pre-Fisc

Post-Fisc Ratio

Chile 52.8 50.6 104.3 Poland 49.4 31.7 155.8Korea 34.0 31.1 109.4 Italy 49.8 31.9 156.3Switzerland 37.2 29.8 124.8 Norway 42.4 25.5 166.4U.S.A. 49.0 37.4 131.0 Slovak R. 43.6 26.0 168.1Israel 50.3 37.5 134.2 Sweden 43.6 25.8 169.0Canada 44.0 31.9 138.1 Ireland 52.6 31.1 169.2Iceland 37.9 27.2 139.3 France 49.2 29.0 169.6N. Zealand 46.1 32.7 140.7 Luxembourg 46.6 27.2 171.2Japan 46.4 32.9 141.3 Denmark 41.5 24.2 171.6Australia 46.7 32.8 142.3 Germany 49.5 28.6 172.9Portugal 51.6 36.0 143.4 Czech R. 45.7 25.8 176.8Spain 46.9 32.4 144.8 Austria 47.4 26.5 178.9Estonia 47.6 32.5 146.5 Belgium 47.8 26.5 180.3Netherlands 42.3 28.6 147.9 Slovenia 44.2 24.3 182.0Greece 49.4 33.4 148.1 Finland 47.6 25.7 185.2U. Kingdom 50.6 33.8 149.6

Hungary #N/A 28.5 #N/AMexico #N/A 47.2 #N/ATurkey #N/A 41.7 #N/A

More Ginis (Inequality)

Moved! Fig. 2-5 p. 36. Okun’s Law

Okun’s Law: % Δ in Real GDP = 3% - 2 x Δ in Unemployment