CHAPTER 4 Wheres the Beef Inflation Real GDP

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CHAPTER 4 Where’s the Beef? Inflation, Real GDP, and Business Cycles Copyright© 2008 South-Western,

CHAPTER 4 Where’s the Beef? Inflation, Real GDP, and Business Cycles Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -1 Inflation Rate: Weighted Average of Percentage Price Changes Copyright© 2008 South-Western,

Exhibit 4 -1 Inflation Rate: Weighted Average of Percentage Price Changes Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -2 Coverage Differences among the GDP Price Index, Consumer Price Index, and

Exhibit 4 -2 Coverage Differences among the GDP Price Index, Consumer Price Index, and Producer Price Index Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -3 U. S. Consumer Price Index Categories, 2006 Source: U. S. Department

Exhibit 4 -3 U. S. Consumer Price Index Categories, 2006 Source: U. S. Department of Labor, Table 1, ‘‘Consumer Price Index for All Urban Consumers (CPI-U): U. S. City Average, by Expenditure Category and Commodity and Service Group, ’’ http: //www. bls. gov/ news. release/cpi. t 01. htm (accessed October 27, 2006). Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -4 England: Consumer Price Index, 1985– 2005 Copyright© 2008 South-Western, a part

Exhibit 4 -4 England: Consumer Price Index, 1985– 2005 Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -5 Measuring Compound Annual Inflation Rates Copyright© 2008 South-Western, a part of

Exhibit 4 -5 Measuring Compound Annual Inflation Rates Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -6 Examples of Countries with Very High Inflation Rates, 1973– 1991 Source:

Exhibit 4 -6 Examples of Countries with Very High Inflation Rates, 1973– 1991 Source: International Monetary Fund, The World Economic Outlook Database, http: //www. imf. org/external/ pubs/ft/weo/2000/02/data/pcpi_a. csv (accessed January 14, 2006). Bolded figures are annual inflation rates over 1, 000% per year. Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -7 Real versus Nominal GDP Copyright© 2008 South-Western, a part of Cengage

Exhibit 4 -7 Real versus Nominal GDP Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -8 Real versus Nominal GDP Copyright© 2008 South-Western, a part of Cengage

Exhibit 4 -8 Real versus Nominal GDP Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -9 Deriving the Price Index: Base Year = 2000 Copyright© 2008 South-Western,

Exhibit 4 -9 Deriving the Price Index: Base Year = 2000 Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -10 Calculating Real GDP Using Nominal GDP and Price Index Copyright© 2008

Exhibit 4 -10 Calculating Real GDP Using Nominal GDP and Price Index Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -11 U. S. Nominal GDP, GDP Price Index, and Real GDP, 1980–

Exhibit 4 -11 U. S. Nominal GDP, GDP Price Index, and Real GDP, 1980– 2005 Source: Bureau of Economic Analysis, National Economic Accounts, http: //www. bea. gov/bea/dn/home/ gdp. htm (accessed March 28, 2006). Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -12 Recessions and Expansions During the Business Cycle Copyright© 2008 South-Western, a

Exhibit 4 -12 Recessions and Expansions During the Business Cycle Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -13 Procyclical, Countercyclical, and Acyclical Macroeconomic Variables Copyright© 2008 South-Western, a part

Exhibit 4 -13 Procyclical, Countercyclical, and Acyclical Macroeconomic Variables Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -14 Leading Indicators Worldwide, May 30, 2006 Source: The Conference Board, http:

Exhibit 4 -14 Leading Indicators Worldwide, May 30, 2006 Source: The Conference Board, http: //www. conference-board. org (accessed May 30, 2006). Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -15 U. S. Leading Economic Indicators Source: The Conference Board, ‘‘Leading Economic

Exhibit 4 -15 U. S. Leading Economic Indicators Source: The Conference Board, ‘‘Leading Economic Indicators and Related Composite Indexes, ’’ http: //www. conference-board. org/ (accessed January 21, 2006). Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -16 U. S. Recessions and Movements in U. S. Real GDP: 1947

Exhibit 4 -16 U. S. Recessions and Movements in U. S. Real GDP: 1947 (I) To 2006 (II) Source: Data from Federal Reserve Bank of St. Louis, Economic Data—FRED, http: //research. stlouisfed. org/fred 2/series/GDPC 1/downloaddata (accessed September 6, 2006). Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -17 U. S. Business Cycle Expansions and Contractions: 1945– 2006 Source: National

Exhibit 4 -17 U. S. Business Cycle Expansions and Contractions: 1945– 2006 Source: National Bureau of Economic Research, ‘‘Business Cycle Expansions and Contractions, ’’ http: //www. nber. org/cycles/ (accessed September 6, 2006). Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.

Exhibit 4 -18 Differences in Business Cycles: 1947– 1982 versus 1982– 2006 Copyright© 2008

Exhibit 4 -18 Differences in Business Cycles: 1947– 1982 versus 1982– 2006 Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved.