This preview shows page 1. Sign up to view the full content.
Unformatted text preview: the current civilian labor force, number of persons unemployed, and unemployment rate. Click on “Prices” if you
want to find the one-month change in the CPI. If you want to
find the most current GDP figures, go to the Bureau of
Economic Analysis at www.emcp.net/GDPfigures and click
on “Frequently Requested NIPA Tables” and then “Gross
Domestic Product.” payment. For example, the Social Security
check that 67-year-old Frank Simmons
receives is a government transfer payment.
Simmons, who is retired, is not currently
supplying a good or service to the government in exchange for the Social Security
check. Because GDP accounts for only current goods and services produced, and a
transfer payment has nothing to do with
current goods and services produced, transfer payments are properly omitted from
GDP statistics. See Exhibit 11-3 for a review
of items omitted from GDP. EXHIBIT 11-3 What the GDP Omits
What the GDP Omits Item
Example Illegal goods
Illegal goods and services
services A person buys an illegal substance.
illegal substance. Government Transfer Payments Legal goods and services with no
record of the tra...
View Full Document
- Winter '14