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
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
McConnell/
Brue text!
Unemployment rate was 8.3/142 or 5.8%. In 2000 it was 4%.
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
0.500
0.450
0.400
0.350
0.300
0.250
0.200
0.150
0.100
0.050
0.000
1950
1960
1970
1980
1990
2000 (30)
2010
Source: US Department of Commerce
http://www.personal.umd.umich.edu/~mtwomey/econhelp/301files/Y-Dist.xlsx
More Ginis (Inequality)
Pre- PostFisc Fisc
Ratio
Chile
52.8
50.6 104.3
Korea
34.0
31.1 109.4
Switzerland
37.2
29.8 124.8
U.S.A.
49.0
37.4 131.0
Israel
50.3
37.5 134.2
Canada
44.0
31.9 138.1
Iceland
37.9
27.2 139.3
N. Zealand
46.1
32.7 140.7
Japan
46.4
32.9 141.3
Australia
46.7
32.8 142.3
Portugal
51.6
36.0 143.4
Spain
46.9
32.4 144.8
Estonia
47.6
32.5 146.5
Netherlands 42.3
28.6 147.9
Greece
49.4
33.4 148.1
U. Kingdom 50.6
33.8 149.6
Hungary
Mexico
#N/A
#N/A
28.5 #N/A
47.2 #N/A
Poland
Italy
Norway
Slovak R.
Sweden
Ireland
France
Luxembourg
Denmark
Germany
Czech R.
Austria
Belgium
Slovenia
Finland
PrePostFisc
Fisc
Ratio
49.4
31.7
155.8
49.8
31.9
156.3
42.4
25.5
166.4
43.6
26.0
168.1
43.6
25.8
169.0
52.6
31.1
169.2
49.2
29.0
169.6
46.6
27.2
171.2
41.5
24.2
171.6
49.5
28.6
172.9
45.7
25.8
176.8
47.4
26.5
178.9
47.8
26.5
180.3
44.2
24.3
182.0
47.6
25.7
185.2
Moved! Fig. 2-5 p. 36. Okun’s Law
Okun’s Law: % Δ in Real GDP = 3% - 2 x Δ in Unemployment