Chap002

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Unformatted text preview: • Recession Depression Recovery Stabilization • • • Fiscal Policy Monetary Policy National Debt 2-21 Key Economic Indicators • Gross Domestic Product (GDP) • Unemployment Rate • Price Indexes • Consumer Price Index(CPI) • Producer Price Index(PPI) 2-22 U.S. Gross Domestic Product Domestic 12.000 10.000 8.000 6.000 In Billions of U.S. $ 4.000 2.000 0 1940 1950 1960 1970 1980 1990 2000 2002 Source: U.S. Dept. of Commerce, Bureau of Economic Analysis 2-23 Share of World GDP(%) •North America •Asia •Europe •South America •Africa /Australia 1970 1970 2001 2001 37 21 33 33 7 2 38 28 28 4 2 Source: Investor’s Business Daily, Apr. 29, 2003. 2-24 U.S. Unemployment (%) (%) 16 14 12 10 8 6 4 2 0 1940 1950 1960 1970 1980 1990 2000 2002 Source: U.S. Bureau of Labor Statistics 2-25 What Makes Up The Consumer Price Index? Recreation Apparel 5% 6% Medical Care/ Insurance 7% Medical Care 6% Other 5% Housing & Util. 39% Food & Beverage 16% SOURCE: U.S. Bureau of Labor Statistics Transportation 18% 2-26 Consumer Price Index 200 180 160 140 120 100 80 60 40 20 0 1982-84 = 100 1940 1950 1960 1970 1980 1990 2000 2002 Source: U.S. Dept. of Labor, Bureau of Labor Statistics 2-27 % Change in Labor ProductivityChange U.S. U.S. 9 8 7 6 5 4 3 2 1 0 -1 1950 1960 1970 1980 1990 2000 2002 Source: U.S. Dept. of Commerce, Bureau of Labor Statistics 2-28 Where Does the Government Get Its Money? Government 4% 4% 9% 43% Individual Income Taxes Social Security & Payroll Taxes Corporate Taxes Excise Taxes 40% Source: Office of Management & Budget, 2002 Source: Other 2-29 What Federal Dollars Buy (2002) Human Resources. – 63% Source: Office of Management & Budget Interest 7.9% Defense - 17.5% Other 5.7% Physical Resources 5.9% 2-30 What $1 Billion Can Buy An Egg McMuffin and large coffee for An the President & his 2,000 Secret Service agents every morning for 575 years. agents Average annual grocery bill for 250,000 Average families of 4. families One year’s food for 5 million cats & One dogs. dogs. Tuition, room and board for freshman Tuition, classes at Brown, Cornell, Harvard, Pennsylvania & Yale with $50M leftover for books. books. 2-31 What is the National Debt? The debt has reached $6.7 The trillion+ trillion+ If $1,000 bills were stacked: $1 Million = $1 $1 Billion = $1 $1 Trillion = 4.29 Inches Inches 357.5 Feet 357.5 67 Miles The debt is equal to 442.2 The miles in $1,000 bills miles National Debt Clock- http:// http:// National www.brillig.com/debt_clock/ 2-32 State Budget Deficits (’03 & ’04) California New York New Jersey Connecticut Missouri Ohio Nevada Source: BusinessWeek March 17, 2003 Billions $ 35.0 12.0 5.7 2.5 1.3 0.72 0.64 2-33...
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This note was uploaded on 09/30/2013 for the course BUS 101 taught by Professor All during the Fall '07 term at SUNY Buffalo.

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