sch11269_fm.indd Page i 7/9/08 1:54:34 PM user /Volumes/107/MHBR022/ch04 ELEVENTH EDITION THE ECONOMY TODAY ftp_tt BRADLEY R SC HILLER American University Boston Burr Ridge, IL Dubuque, IA New York San Francisco St Louis Bangkok Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto sch11269_fm.indd Page ii 7/9/08 1:54:35 PM user /Volumes/107/MHBR022/ch04 THE ECONOMY TODAY Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020 Copyright © 2008, 2006, 2003, 2000, 1997, 1994, 1991, 1989, 1986, 1983, 1980 by The McGraw-Hill Companies, Inc All rights reserved No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning Some ancillaries, including electronic and print components, may not be available to customers outside the United States This book is printed on acid-free paper DOW/DOW ISBN 978-0-07-351126-9 MHID 0-07-351126-9 Executive editor: Douglas Reiner Developmental editor: Angela Cimarolli Marketing manager: Melissa Larmon Senior project manager: Harvey Yep Lead production supervisor: Michael R McCormick Senior designer: Kami Carter Photo research coordinator: Lori Kramer Lead media project manager: Brian Nacik Cover design: TK Interior design: TK Typeface: 10/12 Times New Roman Compositor: Aptara Printer: R R Donnelley Library of Congress Cataloging-in-Publication Data Schiller, Bradley R., 1943– The economy today / Bradley R Schiller.—Eleventh ed p cm Includes index ISBN-13: 978-0-07-351126-9 (alk paper) ISBN-10: 0-07-351126-9 (alk paper) Economics I Title HB171.5.S292 2008 330—dc22 2007025926 www.mhhe.com sch11269_fm.indd Page iii 7/9/08 1:54:35 PM user A B O U T /Volumes/107/MHBR022/ch04 T H E A U T H O R Bradley R Schiller has over three decades of experience teaching introductory economics at American University, the University of California (Berkeley and Santa Cruz), and the University of Maryland He has given guest lectures at more than 300 colleges ranging from Reno, Nevada, to Istanbul, Turkey Dr Schiller’s unique contribution to teaching is his ability to relate basic principles to current socioeconomic problems, institutions, and public policy decisions This perspective is evident throughout The Economy Today Dr Schiller derives this policy focus from his extensive experience as a Washington consultant He has been a consultant to most major federal agencies, many congressional committees, and political candidates In addition, he has evaluated scores of government programs and helped design others His studies of discrimination, training programs, tax reform, pensions, welfare, Social Security, and lifetime wage patterns have appeared in both professional journals and popular media Dr Schiller is also a frequent commentator on economic policy for television, radio, and newspapers Dr Schiller received his PhD from Harvard in 1969 He earned a B.A degree, with great distinction, from the University of California (Berkeley) in 1965 He is now a professor of economics in the School of Public Affairs at American University in Washington, DC iii sch11269_fm.indd Page iv 7/9/08 1:54:35 PM user /Volumes/107/MHBR022/ch04 P R E FA C E F IB ER OPTICS SET TH E PA CE The world does seem to be moving faster News travels at amazing speeds Financial markets move with lightning reflexes Technology advances at an astonishing pace New products appear daily Fiber optics play a key role in this harried and hurried pace The strands of fiber optics that appear on the cover of this book remind us how and why the economic pace has accelerated They also remind us of how our productive capacity keeps expanding The increased pace of our tech-driven world hasn’t made teaching economics any easier Sure, the tools of teaching (e.g., “smart” classrooms, course-management software, distance learning, electronic chat rooms) have increased our productivity But the content has become more complex, largely due to the globalization of production, financial markets, and even market psychology What happened to interest rates, stock prices, or currency values in China and Europe while you were sleeping may have significant impact on today’s action in U.S markets, on Fed policy decisions, and ultimately on the performance of the U.S economy It’s hard enough just keeping track of all this action Teaching students to think in globally interactive terms is an even greater challenge At the micro level, globalization and technological advances create similar problems Market structures are continuously evolving, as are the products themselves With those changes, even market boundaries are on the move Is your local cable franchise really a monopoly when satellite, Internet, and telephone companies offer virtually identical products? Will Apple Computer, Inc., behave more like a monopolist or like a perfect competitor in the newly defined iPhone and iTV markets? With the Internet creating global shopping malls, how should industry concentration ratios be calculated? The Federal Trade Commission and the Antitrust Division of the U.S Justice Department are vexed by everchanging market boundaries and structures iv Coping with Change So how we cope with all this flux in the classroom? Or, for that matter, in a textbook that will be in print for years? We could ignore the complexities of the real world and focus exclusively on abstract principles, perhaps “enlivening” the presentation with fables about the Acme Widget Company or the Jack and Jill Water Company That approach not only bores students, but it also reinforces the misperception that economics is irrelevant to their daily life Alternatively, we could spend countless hours reporting and discussing the economic news of the day But that approach transforms the principles course into a currentevents symposium The Economy Today pursues a different strategy I am convinced that economics is an exciting and very relevant field of study I have felt this way since I attended my first undergraduate principles course Despite an overbearing, boring textbook and a super-sized class (over 1,000 students!), I somehow discerned that economics could be an interesting topic All it needed was a commitment to merging theoretical insights with the daily realities of shopping malls, stock markets, global integration, and policy development Whew! What Makes Economies Tick How does this lofty ambition translate into the nuts and bolts of teaching? It starts by infusing the textbook and the course with a purposeful theme Spotlighting scarcity and the necessity for choice is not enough; there’s a much bigger picture It’s really about why some nations prosper while others languish As we look around the world, how can we explain why millionaires abound in the United States, Hong Kong, the United Kingdom, and Australia, while 2.8 billion earthlings live on less than $2 a day? How is it that affluent consumers in developed nations carry around camphones while one-fourth of the world’s population has never made a phone call? Surely, the way an economy is structured has something to with this At the micro level, Adam Smith taught us long ago that the degree of competition in product markets affects the quantity, quality, and price of consumer products sch11269_fm.indd Page v 7/9/08 1:54:36 PM user /Volumes/107/MHBR022/ch04 PR EFACE At the aggregate level, we’ve also seen that macro structure matters Specifically, we recognize that the degree of government intervention in an economy is a critical determinant of its performance The Chinese Communist Party once thought that central control of an economy would not only reduce income inequalities but also accelerate growth Since decentralizing parts of its economy, freeing up some markets, and even legalizing private property (see World View, p 17), China has become the world’s fastest-growing economy India has heeded China’s experience and is also pursuing a massive privatization and deregulation strategy At the same time, some of the world’s poorest nations remain economically imprisoned by excessive regulation, undeveloped markets, high taxes, unsecured property rights, and pervasive corruption This doesn’t imply that laissez faire is the answer to all of our economic problems What it does emphasize, however, is how important the choice between market reliance and government dependence can be We know that the three core questions in economics are WHAT, HOW, and FOR WHOM to produce Instead of discussing them in a political and institutional void, we should energize these issues with more real-world context We should also ask who should resolve these core questions, the governments or the marketplace? Where, when, and why we expect market failure—suboptimal answers to the WHAT, HOW, and FOR WHOM questions? Where, when, and why can we expect government intervention to give us better answers—or to fail? This theme of market reliance versus government dependence runs through every chapter of The Economy Today Markets vs Government Within the two-dimensional framework of three core questions and markets-versusgovernments decision making, The Economy Today pursues basic principles in an unwavering real-world context The commitment to relevance is evident from the get-go At the outset, the very serious trade-offs between arms spending and food production in North Korea (p 9) put the concept of opportunity costs into a meaningful context Chapter pursues the nature of opportunity cost into the future by examining the earthbound sacrifices we’ll have to make for the proposed Lunar and Martian settlements (Chapter 1’s “Economy Tomorrow” section, p 19) These kinds of concrete, page-one examples motivate students to learn and retain core economic principles Chapter gives students a quick economic tour of the world It shows how different nations have resolved the WHAT, HOW, and FOR WHOM questions Students see how rich the USA is—and how poor other nations are (see World Views, pp 27 and 28) They also see that inequality is not an ailment unique to “rich” nations (e.g., World View, p 39) Chapter 37 pursues this perspective even further by examining the urgent problem of global poverty—its unfathomable dimensions, its principal causes, and its remedial policy options These two chapters give students an empirically based global perspective on economic outcomes that can spark a motivated search for explanations, that is, economic theory Real-World Concerns In macro, most instructors emphasize the cyclical problems of unemployment and inflation But students don’t get motivated to learn the origins or solutions for these problems just by citing the latest economics statistics (yawn) Most students don’t have enough personal experience to know why percent unemployment or 3.7 percent inflation are serious concerns To fill that void, The Economy Today takes students on a tour of unemployment and inflation In Chapter 6, they see unemployment statistics translate into personal tragedies and social tensions They see who loses their job when the unemployment rate rises (p 109) and how devastating the experience can be (pp 113–114) In Chapter 7, the devastation wrought by hyperinflation drives home the realization that price-level changes matter These two chapters lay a global, historical, and personal foundation that gives purpose to the study of macro theory Few other texts lay this foundation In the core macro chapters (8–18), The Economy Today constantly reminds students of the real-world relevancy of core concepts The potential instability of aggregate demand, for example, is illustrated with data on quarterly variance in consumption and investment (p 179) as well as News accounts on investment decisions (p 178) and consumer confidence (pp 175, 207) The impacts of terrorism (News, p 178) and “oil shocks” (News, p 359) on Macro Realities v sch11269_fm.indd Page vi 7/9/08 1:54:36 PM user PR EFACE 32 29.1 UNEMPLOYMENT RATE, 2003 (percent) 28 Unemployment rates vary 24 by race, sex, age by education 20 15.9 16 13.2 12 8.3 7.5 6.8 5.5 4.2 3.5 4.6 3.6 4.3 3.9 ADULT FEMALES ac k pa ni c N a av tio er na ag l H ig e h dr sc op ho o o H uts l ig gr h s ad ch ua oo te l s dr Col op le ou ge ts gr Co ad ll ua eg te e s H is Bl W hi te c ni ac k pa H is Bl hi te c ADULT MALES W ni pa H is Bl hi te ac k 2.0 W vi /Volumes/107/MHBR022/ch04 TEENAGERS FIGURE 6.4 Unemployment Isn’t Experienced Equally by Race, Sex, or Education Minority groups, teenagers, and less-educated individuals experience higher rates of unemployment Teenage unemployment rates are particularly high, especially for black and other minority youth Source: U.S Department of Labor (2006 data) both AD and AS get timely recognition, as the successive tax cuts of 2001, 2002, 2003, and 2004 By tying core AS/AD concepts to real-world events, the textbook highlights the importance and relevance of macro theory When we peer into the long run, it’s important to ask what makes economies grow and what institutions or policies can accelerate that growth But students won’t pay much attention until you demonstrate that economic growth is both important and desirable Chapter 17 attempts this by reviewing the payoffs to growth and by directly confronting concerns about the limits to growth Chapter 37 illustrates how the absence of economic growth can fulfill Malthus’s vision of human misery Nowhere is the commitment to a real-world context more evident than in Chapter 19 The very title of the chapter (“Theory versus Reality”) reveals its purpose The chapter not only confronts but also explains the gap between the promise of macro theory and the reality of economic outcomes The section entitled “Why Things Don’t Always Work” (starting on p 375) is a nice bridge between the blackboard and the boardroom for your students Every macro course should include this chapter Micro Realities sch11269_ch06_106-122.indd 110 The emphasis on real-world applications continues in the micro section Nowhere is this more evident than in the discussion of market structure Chapter 22 offers the typical depiction of the perfectly competitive firm in static equilibrium (albeit illustrated with realworld catfish farmers) Then comes a second chapter on perfect competition that turns the spotlight on the competitive dynamics that power market-based economies The reality of market structures is that they typically evolve—sometimes at lightening speed In 1977, Apple Computer, Inc., had a virtual monopoly on personal computers; in 2001 it had a lock on portable, digital music players (iPods) In 2007, it had the new iPhone and iTV markets to itself In all these cases, a swarm of wannabes transformed the market into more competitive structures In the process, the products improved, sales volumes increased, and prices fell at extraordinary rates of speed By emphasizing the behavior of a competitive 6/20/07 market rather than just the structure of static equilibrium, Chapter 23 injects excitement into the discussion of market structures The “Economy Tomorrow” section at the end of Chapter 23 explains why iPods are likely to cost only $29 within a few years and why iPhones may be selling for only $99 Understanding how competitive markets make this 6:27:00 PM sch11269_fm.indd Page vii 7/9/08 1:54:37 PM user /Volumes/107/MHBR022/ch04 PR EFACE happen is probably the most important insight in microeconomics By building on student experience with music downloads and MP3 players, The Economy Today helps students acquire that insight The central theme of government dependence versus market reliance is particularly evident in Chapter 27, “(De)Regulation of Business.” When the lights went out in California and later in the Midwest, a lot of people blamed “power pirates.” They wanted the government to more closely regulate electricity markets Others protested that government regulation (e.g., price controls, environmental standards) had caused the brownouts and blackouts They advocated less government intervention and more reliance on the market mechanism Chapter 27 uses the experience of (de)regulation in the rail, air, electricity, and telecommunications industries to highlight unique features of natural monopoly and the possibilities of both market and government failure The FOR WHOM question is one of the three core issues in economics, but it typically gets scant treatment in a principles course The Economy Today tries to remedy this shortfall with companion chapters on taxes (Chapter 33) and income transfers (34) The chapters emphasize the key economic concepts (e.g., marginal tax rates, tax elasticity of labor supply, moral hazard) that are common to both sides of the tax-transfer redistribution system By examining President George W Bush’s 2006 tax return (p 666) students see the distinction between nominal and effective tax rates By reviewing trends in aging and labor-force participation (pp 683–688), they may realize how Social Security alters work incentives and behavior International trade (35) and finance (36) chapters not only explain the core concepts of comparative advantage and exchange-rate determination but also assess the resistance to free trade and flexible exchange rates By identifying the vested interests that resist trade, The Economy Today bridges the gap between free-trade models and real-world trade disputes Students see not only why trade is desirable but also how and why we pay for trade barriers This is a lot more interesting than simply reciting the mathematics of comparative advantage in cloth and wine No chapter brings home the notion of a global community more than Chapter 37 This new chapter focuses on the pervasiveness of material deprivation in scores of poor nations The chapter is designed not only to raise student consciousness of global poverty but also to stimulate more interest in the core issue of what makes economies really “tick”—or not The bottom line here is simple and straightforward: By infusing the presentation of core concepts with a unifying theme and pervasive real-world application, The Economy Today offers an exciting and motivated introduction to economics International Realities E FF EC T IVE P EDAGO G Y Despite the abundance of real-world applications, this is at heart a principles text, not a compendium of issues Good theory and interesting applications are not mutually exclusive This is a text that wants to teach economics, not just increase awareness of policy issues To that end, The Economy Today provides a logically organized and uncluttered theoretical structure for macro, micro, and international theory What distinguishes this text from others on the market is that it conveys theory in a lively, student-friendly manner Clean, Clear Theory Many educational institutions today are focused on the notion of assurance of learning, an important element of some accreditation standards The Economy Today is designed specifically to support your assurance-of-learning initiatives with a simple, yet powerful, solution Each test bank question for The Economy Today maps to a specific chapter learning objective listed in the text You can use our test bank software, EZ Test, to easily query for learning outcomes/objectives that directly relate to the learning objectives for your course You can then use the reporting features of EZ Test to aggregate student results in similar fashion, making the collection and presentation of assurance-of-learning data simple and easy Assurance-ofLearning Ready vii sch11269_fm.indd Page viii 7/9/08 1:54:37 PM user PR EFACE Concept Reinforcement Student comprehension of core theory is facilitated with careful, consistent, and effective pedagogy This distinctive pedagogy includes the following features: Chapter Learning Objectives New to this edition, each chapter contains a set of chapterlevel Learning Objectives Students and professors can be confident that the organization of each chapter surrounds common themes outlined by three to five learning objectives listed on the first page of each chapter End-of-chapter material including the chapter summary, discussion questions, and problem sets is tagged to these objectives as is the supplementary material, which includes the Test Bank, Instructor’s Manual, Study Guide, and PowerPoint Presentations Self-Explanatory Graphs and Tables Graphs are completely labeled, colorful, and positioned on background grids Because students often enter the principles course as graph-phobics, graphs are frequently accompanied by synchronized tabular data Every table is also annotated This shouldn’t be a product-differentiating feature but, sadly, it is Putting a table in a textbook without an annotation is akin to writing a cluster of numbers on the board, then leaving the classroom without any explanation FIGURE 3.3 Shifts vs Movements A demand curve shows how a consumer responds to price changes If the determinants of demand stay constant, the response is a movement along the curve to a new quantity demanded In this case, the quantity demanded increases from (point d1), to 12 (point g1), when price falls from $35 to $20 per hour If the determinants of demand change, the entire demand curve shifts In this case, an increase in income increases demand With more income, Tom is willing to buy 12 hours at the initial price of $35 (point d2), not just the hours he demanded before the lottery win $50 Demand shifts when tastes, income, other goods, or expectations change 45 40 PRICE (per hour) viii /Volumes/107/MHBR022/ch04 35 Shift in demand d2 d1 D2: increased demand 30 25 20 Movement along curve g1 15 D1: initial demand 10 5 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 QUANTITY (hours per semester) Quantity Demanded (hours per semester) Price (per hour) A B C D E F G H I $50 45 40 35 30 25 20 15 10 Initial Demand After Increase in Income 12 15 20 10 12 14 16 19 22 27 Reinforced Key Concepts Key terms are defined in the margin when they first appear and, unlike in other texts, redefined in the margin as necessary in subsequent chapters Web site references are directly tied to the book’s content, not on like ornaments End-ofchapter discussion questions use tables, graphs, and boxed news stories from the text, reinforcing key concepts, and are linked to the chapter’s learning objectives Boxed and Annotated Applications In addition to the real-world applications that run through the body of the text, The Economy Today intersperses boxed domestic (In sch11269_ch02_026-041.indd PagePM 34user 7/26/07 10:29:36 PM epg sch11269_fm.indd Page ix 7/9/08 1:54:38 /Volumes/109/MHCA041/mhpre13%0/ch05 /Volumes/107/MHBR022/ch04 PR EFACE ix the News) and global (World View) case studies Although nearly every text on the market now offers boxed applications, The Economy Today’s presentation is distinctive First, the sheer number of In the News (106) and World View (78) boxes is unique Second, and more important, every boxed application is referenced in the body of the text Third, every News and World View comes with a brief, self-contained explanation Fourth, the News and World View boxes are the explicit subject of the end-ofchapter Discussion Questions and Student Problem Set exercises In combination, these distinctive features assure that students will actually read the boxed applications and discern their economic content The Test Bank provides subsets of questions tied to the News and World View boxes so that instructors can confirm student use of this feature Photos and Cartoons The text presentation is also enlivened with occasional photos and cartoons that reflect basic concepts The photos on page 38 are much more vivid testimony to the extremes of inequality than the data in Figure 2.5 (p 37) The contrasting photos of the original Apple I (p 473), the iMac, and the iPhone (p 482) underscore how the “animal spirits” of competitive markets spur innovation Every photo and cartoon is annotated and referenced in the body of the text These visual features are an integral part of the presentation, not diversions The one adjective invariably used to describe The Economy Today is “readable.” Professors often express a bit of shock when they realize that students actually enjoy reading the book (Well, not as much as a Stephen King novel, but a whole lot better than most textbooks they’ve had to plow through.) The writing style is lively and issue-focused Unlike any other textbook on the market, every boxed feature, every graph, every table, and every cartoon is explained and analyzed Every feature is also referenced in the text, so students actually learn the material rather than skipping over it Because readability is ultimately in the eye of the beholder, you might ask a couple of students to read and compare a parallel chapter in The Economy Today and in another text This is a test The Economy Today usually wins Readability I firmly believe that students must work with key concepts in order to really learn them Weekly homework assignments are de rigueur in my own classes To facilitate homework assignments, I have prepared the Student Problem Set, which includes built-in numerical and graphing problems that build on the tables, graphs, and boxed material that aligns with Student Problem Set © Santokh Kochar/Getty Images/DAL Gene Alexander, USDA Natural Resources Conservation Service/DAL Analysis: An abundance of capital equipment and advanced technology make American farmers and workers far more productive than workers in poor nations www.freebookslides.com PROBLEMS FOR CHAPTER 36 (cont’d) LO1 LO2 LO3 Name: The following schedules summarize the supply and demand for trifflings, the national currency of Tricoli: Triffling price (U.S dollars per triffling) Quantity demanded (per year) Quantity supplied (per year) 40 $4 38 11 $8 36 21 $12 34 31 $16 32 41 $20 30 51 $24 28 61 Use the above schedules for the following: (a) Graph the supply and demand curves (b) Determine the equilibrium exchange rate (c) Determine the size of the excess supply or excess demand that would exist if the Tricolian government fixed the exchange rate at $22 = triffling (d) How might this imbalance be remedied? $24 22 20 PRICE (dollars per triffling) 18 16 14 12 10 10 15 20 25 30 35 40 QUANTITY (trifflings per year) P72 sch11269_ps_P01-P80.indd P72 7/25/07 8:38:01 PM www.freebookslides.com PROBLEMS FOR CHAPTER 37 Name: LO1 Adjusted for inflation, the World Bank’s threshold for “extreme” poverty is now close to $1.50 per person per day (a) How much annual income does this imply? $ (b) What portion of the official U.S poverty threshold (roughly $20,000 for a family of four) is met by the Bank’s measure? % LO2 Close to half the world’s population of billion people is in “severe” poverty with less than $3 of income per day (with inflation adjustments) (a) What is the maximum combined income of this “severely” poor population? $ (b) What percentage of the world’s total income (roughly $60 trillion) does this represent? % LO2 In Namibia, (a) What percent of total output is received by the richest 10 percent of households? (See World View, p 738.) (b) How much output did this share amount to in 2005, when Namibia’s GDP was $6 billion? (c) With a total population of million, what was the implied per capita income of (i) the richest 10 percent of the population? (ii) the remaining 90 percent? $ LO3 (a) How much foreign aid does the U.S now provide? (b) How much is required to satisfy the U.N.’s Millennium Aid Goal? $ $ LO3 If the industrialized nations were to satisfy the U.N.’s Millennium Aid Goal, how much more foreign aid would they give annually? (See Table 37.2.) $ LO3 According to Table 37.3, how many years will it take for per capita GDP to double in (a) China? (b) Kenya? (c) Zimbabwe? LO3 (a) Which low-income nation in Table 37.3 has GDP growth equal to Japan’s? (b) How much faster is that nation’s population growth? (c) How much lower is its per capita GDP growth? LO3 According to the World View on p.740, (a) How much money is spent annually to combat baldness? (b) How much medical care would that money buy for each child who dies from malaria each year? % $ $ % % $ $ P73 Copyright © 2008, The McGraw-Hill Companies All rights reserved sch11269_ps_P01-P80.indd P73 7/25/07 8:38:01 PM www.freebookslides.com sch11269_ps_P01-P80.indd P74 7/25/07 8:38:02 PM www.freebookslides.com sch11269_ps_P01-P80.indd P75 7/25/07 8:38:02 PM www.freebookslides.com sch11269_ps_P01-P80.indd P76 7/25/07 8:38:02 PM www.freebookslides.com sch11269_ps_P01-P80.indd P77 7/25/07 8:38:02 PM www.freebookslides.com sch11269_ps_P01-P80.indd P78 7/25/07 8:38:02 PM www.freebookslides.com sch11269_ps_P01-P80.indd P79 7/25/07 8:38:02 PM www.freebookslides.com sch11269_ps_P01-P80.indd P80 7/25/07 8:38:02 PM sch11269_es.indd Page 7/31/07 11:57:14 AM epg /Volumes/109/MHIY035/per04713_grd www.freebookslides.com NOMINAL GROSS DOMESTIC PRODUCT, 1929–2007 (billions of dollars) Net Exports Year GDP Personal Consumption Expenditures Total Gross Private Domestic Investment Total Government Purchases Federal Net Exports Imports Total Total 1929 103 77 16 6 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 90 75 58 55 65 72 82 90 84 90 70 60 48 45 61 55 82 68 64 67 10 1 12 0 0 Ϫ2 Ϫ2 1 2 2 3 1 3 9 10 12 11 12 13 1 3 5 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 100 125 158 192 211 213 211 234 260 259 71 81 88 99 108 119 144 182 173 178 13 18 10 10 31 36 48 36 1 Ϫ3 Ϫ2 Ϫ1 11 5 4 14 19 13 14 4 7 7 10 13 24 58 88 96 83 29 28 31 38 17 52 61 89 75 19 13 16 21 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 287 331 349 370 370 404 426 448 454 507 182 208 219 233 240 269 271 286 296 318 54 60 54 56 53 68 72 70 84 78 Ϫ3 0 Ϫ2 12 17 16 15 15 17 21 24 20 20 11 15 15 18 15 17 19 20 20 22 39 60 74 81 76 75 79 87 93 112 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 527 545 586 618 664 720 789 834 911 985 332 342 363 383 411 444 481 508 558 605 78 78 88 93 102 118 131 128 141 156 3 1 Ϫ1 Ϫ1 25 26 27 29 33 35 38 41 45 49 22 22 25 26 28 31 37 39 46 50 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1,039 1,128 1,240 1,385 1,501 1,635 1,823 2,031 2,295 2,566 648 702 770 852 932 1,030 1,149 1,278 1,430 1,596 152 178 207 244 249 230 292 361 436 490 Ϫ3 Ϫ8 Ϫ3 13 Ϫ2 Ϫ23 Ϫ26 Ϫ24 57 59 66 91 124 136 148 158 186 228 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 2,795 3,131 3,259 3,534 3,932 4,213 4,452 4,742 5,108 5,489 1,762 1,944 2,079 2,286 2,498 2,712 2,895 3,105 3,356 3,596 477 570 516 564 735 736 747 781 821 872 Ϫ14 Ϫ15 Ϫ20 Ϫ51 Ϫ102 Ϫ114 Ϫ131 Ϫ142 Ϫ106 Ϫ80 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 5,803 5,995 6,337 6,657 7,072 7,397 7,816 8,304 8,747 9,268 3,839 3,986 4,235 4,477 4,743 4,975 5,256 5,547 5,879 6,282 846 803 848 932 1,033 1,112 1,209 1,317 1,438 1,558 2000 2001 2002 2003 2004 2005 2006 9,817 10,128 10,469 10,960 11,712 12,455 13,247 6,739 7,055 7,350 7,703 8,211 8,742 9,269 1,679 1,646 1,570 1,649 1,830 2,036 2,213 Source: U.S Department of Commerce National Defense — NonDefense State and Local Percent Change from Prior Year GDP — — — — — — — — — — 7 6 6 7 Ϫ12.4 Ϫ18.2 Ϫ23.5 Ϫ4.1 17.1 11.1 14.4 9.8 Ϫ6.5 7.0 13 49 60 58 74 16 10 10 13 3 1 7 7 7 12 14 17 10.2 25.0 28.8 21.3 9.7 1.0 Ϫ.8 10.6 11.1 Ϫ.4 20 39 52 56 48 48 47 51 54 67 15 34 46 48 42 40 41 45 45 55 6 11 19 21 22 24 27 29 32 35 39 44 10.7 15.3 5.4 5.3 9.0 6.4 5.8 1.4 8.7 113 121 132 138 145 153 174 195 212 224 65 69 76 78 79 82 94 106 114 116 55 58 62 62 61 62 73 85 92 92 10 11 14 15 18 19 20 21 21 23 47 52 55 59 65 71 79 88 98 108 3.9 3.5 7.5 5.5 7.4 8.4 9.6 5.7 9.3 8.1 55 62 74 91 127 122 151 182 212 252 237 251 270 287 322 361 384 415 455 503 116 117 125 127 138 152 160 176 191 211 90 89 93 93 99 107 113 122 132 146 25 28 32 33 38 44 47 53 59 65 120 133 144 160 184 209 223 239 263 291 5.5 8.6 9.9 11.7 8.3 8.9 11.5 11.4 13.0 11.8 278 302 282 277 303 303 320 365 446 509 293 317 303 328 405 417 452 507 553 589 569 631 684 735 800 878 942 997 1,036 1,100 245 281 312 344 376 413 438 460 462 482 169 197 228 252 283 312 332 351 355 363 75 84 84 92 92 101 106 109 106 119 324 349 371 391 424 464 503 537 574 617 8.9 12.0 4.1 8.5 11.3 7.1 5.7 6.5 7.7 7.5 Ϫ78 Ϫ27 Ϫ33 Ϫ65 Ϫ93 Ϫ91 Ϫ96 Ϫ101 Ϫ159 Ϫ260 552 596 635 655 720 812 868 955 955 991 630 624 668 720 814 903 964 1,056 1,115 1,251 1,180 1,234 1,271 1,291 1,325 1,369 1,416 1,468 1,518 1,620 508 527 533 525 519 519 527 530 530 555 374 383 376 362 353 348 354 349 345 360 134 144 157 162 165 170 172 181 184 195 671 706 737 766 806 850 888 937 987 1,065 5.8 3.3 5.7 5.0 6.2 4.6 5.7 6.2 5.3 6.0 Ϫ379 Ϫ367 Ϫ424 Ϫ499 Ϫ613 Ϫ716 Ϫ763 1,096 1,032 1,005 1,040 1,178 1,303 1,466 1,475 1,399 1,430 1,540 1,791 2,019 2,229 1,721 1,825 1,961 2,092 2,226 2,372 2,528 578 612 679 756 825 878 927 370 392 437 497 551 589 621 208 220 242 259 274 289 306 1,142 1,212 1,281 1,336 1,400 1,494 1,601 5.9 3.2 3.4 4.7 6.9 6.3 6.3 - - — — — — — — — — — - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - — - - sch11269_es.indd Page 7/31/07 11:57:15 AM epg /Volumes/109/MHIY035/per04713_grd www.freebookslides.com REAL GROSS DOMESTIC PRODUCT IN CHAIN-WEIGHTED DOLLARS, 1929 – 2006 (2000 ϭ 100) Net Exports Year GDP Personal Consumption Expenditures Total Gross Private Domestic Investment Total Government Purchases Federal Net Exports Imports Total Total 1929 865 661 91 35 44 121 25 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 791 740 644 636 704 767 867 911 880 951 626 607 553 541 579 615 677 702 670 729 61 38 12 17 31 57 73 91 60 77 Ϫ10 Ϫ10 Ϫ9 Ϫ10 Ϫ9 Ϫ17 Ϫ15 Ϫ14 Ϫ15 Ϫ4 29 24 19 19 21 22 23 29 29 31 39 34 28 29 30 39 38 43 34 35 133 139 134 129 146 156 175 167 180 196 28 28 27 35 45 46 72 67 71 97 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1,034 1,211 1,435 1,671 1,807 1,786 1,589 1,575 1,643 1,635 767 822 803 826 850 903 1,013 1,032 1,054 1,083 108 132 70 41 51 67 172 165 211 161 Ϫ1 Ϫ9 Ϫ16 Ϫ31 Ϫ32 Ϫ27 18 29 35 36 24 20 21 30 65 74 58 58 36 45 40 51 53 57 47 45 52 50 202 335 789 1,173 1,321 1,153 397 337 362 405 87 215 564 895 1,014 852 201 127 144 160 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1,777 1,915 1,988 2,080 2,065 2,213 2,256 2,301 2,279 2,441 1,153 1,171 1,208 1,266 1,291 1,386 1,425 1,461 1,472 1,554 228 228 267 216 206 257 253 242 222 266 Ϫ9 Ϫ8 Ϫ18 Ϫ12 Ϫ14 Ϫ11 Ϫ7 Ϫ12 Ϫ34 50 62 59 55 58 64 74 81 70 77 59 62 67 73 70 78 85 88 92 101 405 554 666 714 665 641 641 670 691 714 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 2,501 2,560 2,715 2,834 2,998 3,191 3,399 3,484 3,652 3,765 1,597 1,630 1,711 1,781 1,888 2,007 2,121 2,185 2,310 2,396 266 264 298 318 344 393 427 408 431 457 Ϫ21 Ϫ19 Ϫ26 Ϫ22 Ϫ15 Ϫ26 Ϫ40 Ϫ49 Ϫ78 Ϫ70 90 91 95 102 114 117 126 128 139 145 103 102 114 117 123 136 157 168 193 204 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 3,771 3,898 4,105 4,341 4,319 4,311 4,540 4,750 5,015 5,173 2,451 2,545 2,701 2,833 2,812 2,876 3,035 3,164 3,303 3,383 427 475 532 594 550 453 544 627 702 725 Ϫ64 Ϫ75 Ϫ88 Ϫ62 Ϫ36 Ϫ7 Ϫ41 Ϫ66 Ϫ67 Ϫ45 161 164 176 209 226 224 234 240 265 292 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 5,161 5,291 5,189 5,423 5,813 6,053 6,263 6,475 6,742 6,981 3,374 3,422 3,470 3,668 3,863 4,064 4,228 4,369 4,546 4,675 645 704 606 662 857 849 843 870 890 926 ϩ10 ϩ5 Ϫ15 Ϫ64 Ϫ129 Ϫ149 Ϫ165 Ϫ156 Ϫ112 Ϫ79 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 7,112 7,100 7,336 7,532 7,835 8,031 8,328 8,703 9,066 9,470 4,770 4,778 4,934 5,099 5,290 5,433 5,619 5,831 6,125 6,438 895 822 889 968 1,099 1,134 1,234 1,387 1,524 1,642 2000 2001 2002 2003 2004 2005 2006 9,817 9,890 10,048 10,301 10,703 11,048 11,415 6,739 6,910 7,099 7,295 7,577 7,841 8,091 1,735 1,598 1,557 1,613 1,770 1,866 1,946 National Defense State and Local — 104 — — — — — — — — — 56 111 115 108 101 94 113 109 112 114 124 Ϫ8.9 Ϫ7.7 Ϫ13.3 Ϫ2.1 7.7 7.7 14.2 4.3 Ϫ4.0 7.9 45 169 484 781 882 748 166 97 94 105 54 40 28 17 21 12 29 33 50 54 119 114 107 99 96 99 109 124 131 147 7.8 18.2 20.0 19.9 8.4 Ϫ4.0 Ϫ20.8 Ϫ1.5 3.8 167 294 372 389 335 307 303 316 312 395 125 257 326 329 288 267 266 279 265 325 41 36 45 60 47 40 37 37 46 65 159 161 164 172 174 198 205 217 234 260 8.7 8.8 4.3 3.7 Ϫ.7 5.6 2.0 1.8 Ϫ.5 7.1 715 751 797 818 836 861 937 1,008 1,040 1,038 380 395 423 425 418 424 466 504 514 493 322 332 345 338 323 321 362 404 415 391 58 63 78 82 95 98 99 100 95 98 275 298 306 322 344 367 391 418 442 459 2.5 2.3 6.1 4.4 5.8 6.4 6.5 2.5 4.8 3.1 213 224 250 261 255 227 271 301 327 333 1,012 990 983 980 1,004 1,027 1,031 1,043 1,074 1,094 456 426 423 402 396 397 393 404 412 420 354 324 315 294 284 279 277 280 285 291 98 102 108 104 109 115 115 122 127 129 471 484 487 506 528 545 548 548 568 579 3.4 5.3 5.8 Ϫ.5 Ϫ.2 5.3 4.6 5.6 3.2 323 327 302 294 318 328 353 391 454 506 310 319 315 354 441 469 510 540 561 586 1,115 1,125 1,145 1,187 1,227 1,312 1,392 1,426 1,445 1,482 439 459 477 506 525 560 586 597 586 594 303 322 349 371 395 423 445 450 446 443 134 137 128 135 129 137 141 146 138 150 581 570 567 575 593 629 669 695 721 749 Ϫ.2 2.5 Ϫ1.9 4.5 7.2 4.1 3.5 3.4 4.1 3.5 Ϫ54 Ϫ14 Ϫ15 Ϫ52 Ϫ79 Ϫ71 Ϫ79 Ϫ104 Ϫ203 Ϫ296 552 589 629 650 706 778 843 943 966 1,008 607 603 645 702 785 849 923 1,048 1,170 1,304 1,530 1,547 1,555 1,541 1,541 1,549 1,564 1,594 1,624 1,686 659 658 646 619 596 580 573 567 561 573 479 474 450 425 404 389 383 373 365 372 178 182 195 194 191 191 189 194 195 201 868 886 906 919 943 968 990 1,025 1,063 1,113 1.9 Ϫ.2 3.3 2.7 4.0 2.5 3.7 4.5 4.2 4.5 Ϫ379 Ϫ399 Ϫ471 Ϫ518 Ϫ590 Ϫ619 Ϫ618 1,096 1,036 1,013 1,026 1,120 1,196 1,303 1,475 1,435 1,484 1,545 1,711 1,815 1,921 1,721 1,780 1,858 1,904 1,940 1,958 1,998 578 601 643 687 716 727 742 370 384 413 449 475 483 493 208 216 230 238 241 243 249 1,142 1,179 1,215 1,217 1,223 1,230 1,256 3.7 1.6 2.5 3.9 3.2 3.3 Source: U.S Department of Commerce Note: Subtotals within Government Purchases based on 1992 prices for years 1929–1989 — NonDefense Percent Change from Prior Year GDP - - — — — — — — — — — 17 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - — - sch11269_es.indd Page 7/31/07 11:57:15 AM epg /Volumes/109/MHIY035/per04713_grd www.freebookslides.com CONSUMER PRICE INDEX, 1925 – 2006 (1982 – 84ϭ100) - - Year Index (all items) Percent Change 1925 1926 1927 1928 1929 17.5 17.7 17.4 17.1 17.1 3.5 Ϫ1.1 Ϫ2.3 Ϫ1.2 0.6 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 16.7 15.2 13.7 13.0 13.4 13.7 13.9 14.4 14.1 13.9 Ϫ6.4 Ϫ9.3 Ϫ10.3 0.8 1.5 3.0 1.4 2.9 Ϫ2.8 0.0 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 14.0 14.7 16.3 17.3 17.6 18.0 19.5 22.3 24.1 23.8 0.7 9.9 9.0 3.0 2.3 2.2 18.1 8.8 3.0 Ϫ2.1 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 24.1 26.0 26.5 26.7 26.9 26.8 27.2 28.1 28.9 29.1 5.9 6.0 0.8 0.7 Ϫ0.7 0.4 3.0 2.9 1.8 1.7 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 29.6 29.9 30.2 30.6 31.0 31.5 32.4 33.4 34.8 36.7 1.4 0.7 1.3 1.6 1.0 1.9 3.5 3.0 4.7 6.2 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 38.8 40.5 41.8 44.4 49.3 53.8 56.9 60.6 65.2 72.6 5.6 3.3 3.4 8.7 12.3 6.9 4.9 6.7 9.0 13.3 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 82.4 90.9 96.5 99.6 103.9 107.6 109.6 113.6 118.3 124.0 12.5 8.9 3.8 3.8 3.9 3.8 1.1 4.4 4.6 4.6 1990 1991 1992 1993 130.7 136.2 140.3 144.5 6.1 3.1 2.9 2.7 Note: Data beginning 1978 are for all urban consumers: earlier data are for urban wage earners and clerical workers Source: U.S Department of Labor Bureau of Statistics CONSUMER PRICE INDEX, 1925 – 2006 (continued) - INTEREST RATES, 1929 – 2006 (percent per annum) - - Year Index (all items) Percent Change 1994 1995 1996 1997 1998 1999 148.2 152.4 156.9 160.5 163.0 166.6 2.7 2.5 3.3 1.7 1.6 2.7 2000 2001 2002 2003 2004 2005 2006 172.2 177.1 179.7 184.0 188.9 195.3 201.6 3.4 2.8 1.6 2.6 2.7 3.4 3.2 CHAIN-WEIGHTED PRICE DEFLATORS FOR GROSS DOMESTIC PRODUCT, 1959 – 2006 (2000 ϭ100) - Year Prime Rate Charged by Banks Discount Rate, Federal Reserve Bank of New York 1929 5.50 – 6.00 5.16 1933 1.50 – 4.00 2.56 1939 1.50 1.00 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 – 1.75 1.75 – 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.34 1.50 2.07 2.56 3.00 3.17 3.05 3.16 3.77 4.20 3.83 4.48 1.59 1.75 1.75 1.99 1.60 1.89 2.77 3.12 2.15 3.36 - - - - - - - - Year Index (all items) Percent Change 1959 20.7 1.2 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 21.0 21.2 21.5 21.8 22.1 22.5 23.1 23.8 24.9 26.1 1.4 1.1 1.4 1.1 1.5 1.8 2.8 3.1 4.3 5.0 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 4.82 4.50 4.50 4.50 4.50 4.54 5.63 5.61 6.30 7.96 3.53 3.00 3.00 3.23 3.55 4.04 4.50 4.19 5.16 5.87 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 27.5 28.9 30.1 31.8 34.7 38.0 40.2 42.7 45.7 49.5 5.3 5.0 4.3 5.6 9.0 9.5 5.8 6.4 7.0 8.3 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 7.91 5.72 5.25 8.03 10.81 7.86 6.84 6.83 9.06 12.67 5.95 4.88 4.50 6.44 7.83 6.25 5.50 5.46 7.46 10.28 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 54.0 59.1 62.7 65.2 67.6 69.7 71.2 73.2 75.7 78.5 9.1 9.4 6.1 3.9 3.8 3.0 2.2 2.7 3.4 3.8 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 15.27 18.87 14.86 10.79 12.04 9.93 8.83 8.21 9.32 10.87 11.77 13.42 11.02 8.50 8.80 7.69 6.33 5.66 6.20 6.93 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 81.6 84.4 86.4 88.3 90.2 92.1 93.8 95.4 96.4 97.8 3.9 3.5 2.3 2.3 2.1 2.0 1.9 1.7 1.1 1.4 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 10.01 8.46 6.25 6.00 7.15 8.83 8.27 8.44 8.35 8.00 6.98 5.45 3.25 3.00 3.60 5.21 5.02 5.00 4.92 4.62 2000 2001 2002 2003 2004 2005 2006 100.0 102.3 104.1 106.0 109.4 112.7 116.1 2.2 2.4 1.7 1.8 2.8 3.0 2.9 2000 2001 2002 2003 2004 2005 2006 9.23 6.91 4.67 4.12 4.34 6.19 7.96 5.73 3.40 1.17 1.15 2.34 4.19 5.96 - - Source: U.S Department of Commerce, Bureau of Economic Analysis Source: Board of Governors of the Federal Reserve System sch11269_es.indd Page 7/31/07 11:57:16 AM epg /Volumes/109/MHIY035/per04713_grd www.freebookslides.com POPULATION AND THE LABOR FORCE, 1929 – 2006 - - Civilian Year Total Population Civilian Noninstitutional Population Armed Forces Civilian Labor Force Civilian Unemployment Unemployment Rate Thousands of Persons 14 Years of Age and Over 1929 1933 1939 1940 1941 1942 1943 1944 1945 1946 1947 121,767 125,579 130,880 132,122 133,402 134,860 136,739 138,397 139,928 141,389 144,126 — — — 99,840 99,900 98,640 94,640 93,220 94,090 103,070 106,018 — — — — — — — — — — — - - - - - - - - - - - - - - - - - - - - - - - - - - - - 49,180 51,590 55,230 55,640 55,910 56,410 55,540 54,630 53,860 57,520 60,168 Labor-Force Participation Rate Employment Population Ratio Percent 1,550 12,830 9,480 8,120 5,560 2,660 1,070 670 1,040 2,270 2,356 3.2 24.9 17.2 14.6 9.9 4.7 1.9 1.2 1.9 3.9 3.9 — — — 55.7 56.0 57.2 58.7 58.6 57.2 55.8 56.8 — — — 47.6 50.4 54.5 57.6 57.9 56.1 53.6 54.5 - - - - - - - - - - - - Thousands of Persons 16 Years of Age and Over 1947 1948 1949 144,083 146,631 149,188 101,827 103,068 103,994 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 152,271 154,878 157,553 160,184 163,026 165,931 168,903 171,984 174,882 177,830 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 — — — 59,350 60,621 61,286 2,311 2,276 3,637 3.9 3.8 5.9 58.3 58.8 58.9 56.0 56.6 55.4 104,995 104,621 105,231 107,056 108,321 109,683 110,954 112,265 113,727 115,329 1,169 2,143 2,386 2,231 2,142 2,064 1,965 1,948 1,847 1,788 62,208 62,017 62,138 63,015 63,643 65,023 66,552 66,929 67,639 68,369 3,288 2,055 1,883 1,834 3,532 2,352 2,750 2,859 4,602 3,740 5.3 3.3 3.0 2.9 5.5 4.4 4.1 4.3 6.8 5.5 59.2 59.2 59.0 58.9 58.8 59.3 60.0 59.6 59.5 59.3 56.1 57.3 57.3 57.1 55.5 56.7 57.5 57.1 55.4 56.0 180,671 183,691 186,538 189,242 191,889 194,303 196,560 198,712 200,706 202,677 117,245 118,771 120,153 122,416 124,485 126,513 128,058 129,874 132,028 134,335 1,861 1,900 2,061 2,006 2,018 1,946 2,122 2,218 2,253 2,238 69,628 70,459 70,614 71,833 73,091 74,455 75,770 77,347 78,737 80,734 3,852 4,714 3,911 4,070 3,786 3,366 2,875 2,975 2,817 2,832 5.5 6.7 5.5 5.7 5.2 4.5 3.8 3.8 3.6 3.5 59.4 59.3 58.8 58.7 58.7 58.9 59.2 59.6 59.6 60.1 56.1 55.4 55.5 55.4 55.7 56.2 56.9 57.3 57.5 58.0 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 205,052 207,661 209,896 211,909 213,854 215,973 218,035 220,239 222,585 225,055 137,085 140,216 144,126 147,096 150,120 153,153 156,150 159,033 161,910 164,863 2,118 1,973 1,813 1,774 1,721 1,678 1,668 1,656 1,631 1,597 82,771 84,382 87,034 89,429 91,949 93,775 96,158 99,009 102,251 104,962 4,093 5,016 4,882 4,365 5,156 7,929 7,406 6,991 6,202 6,137 4.9 5.9 5.6 4.9 5.6 8.5 7.7 7.1 6.1 5.8 60.4 60.2 60.4 60.8 61.3 61.2 61.6 62.3 63.2 63.7 57.4 56.6 57.0 57.8 57.8 56.1 56.8 57.9 59.3 59.9 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 227,726 229,966 232,188 234,307 236,348 238,466 240,651 242,804 245,021 247,342 167,745 170,130 172,271 174,215 176,383 178,206 180,587 182,753 184,613 186,393 1,604 1,645 1,668 1,676 1,697 1,706 1,706 1,737 1,709 1,668 106,940 108,670 110,204 111,550 113,544 115,461 117,834 119,865 121,669 123,869 7,637 8,273 10,678 10,717 8,539 8,312 8,237 7,425 6,701 6,528 7.1 7.6 9.7 9.6 7.5 7.2 7.0 6.2 5.5 5.3 63.8 63.9 64.0 64.0 64.4 64.8 65.3 65.6 65.9 66.5 59.2 59.0 57.8 57.9 59.5 60.1 60.7 61.5 62.3 63.0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 249,924 252,688 255,414 258,137 260,660 263,034 265,453 267,901 270,290 272,945 188,049 189,765 191,576 193,550 196,814 198,584 200,591 203,133 205,220 207,753 1,637 1,564 1,566 1,705 1,610 1,533 1,479 1,437 1,401 1,411 124,787 125,303 126,982 128,040 131,056 132,304 133,943 136,297 137,673 139,368 6,874 8,426 9,384 8,734 7,996 7,404 7,236 6,739 6,210 5,880 5.5 6.7 7.4 6.8 6.1 5.6 5.4 4.9 4.5 4.2 66.4 66.0 66.3 66.2 66.6 66.6 66.8 67.1 67.1 67.1 62.7 61.6 61.4 61.6 62.5 62.9 63.2 63.8 64.1 64.3 2000 2001 2002 2003 2004 2005 2006 282,434 285,545 288,600 291,049 293,708 296,639 299,801 212,573 215,092 217,570 221,168 223,357 226,082 228,315 1,423 1,387 1,416 1,390 1,411,287 1,387,014 1,414,489 142,583 143,734 144,863 146,510 149,401 149,320 151,428 5,692 6,801 8,378 8,774 8,149 7,591 7,001 4.0 4.7 5.8 6.0 5.5 5.1 4.6 67.1 66.8 66.6 66.2 66.0 66.0 66.2 64.4 63.7 62.7 62.3 62.3 62.7 63.1 - - - - - - Source: U.S Department of Labor, Bureau of Labor Statistics www.freebookslides.com P H O T O C R E D I T S Chapter 1: p.1 (left), p.2 Photo by Time Life Pictures/JPL/NASA/Time Life Pictures/Getty Images Chapter 2: p.1 (center), p.26 RF/CORBIS/ DAL Chapter 3: p.1 (right), p.42 Rob Melnychuk/ Getty Images/DAL Chapter 4: p.66 Hisham F Ibrahim/Getty Images/DAL Chapter 5: p.85 (left), p.86 Kim Steele/Getty Images/DAL Chapter 6: p.85 (center), p.106 Dado Galdieri/AP Chapter 7: p.85 (right), p.123 ©Photolink/ Getty Images/DAL Chapter 8: p.143 (left), p.144 Associated Press Chapter 9: p.143 (center), p.166 ©Photolink/Getty Images/DAL Chapter 10: p.143 (right), p.192 C McIntyre/ Photolink/Getty Images/DAL Chapter 11: p.211 (left), p.212 ©Alan Schein/ zefa/Corbis Chapter 12: p.211 (right), p.231 ©Michael Newman/PhotoEdit-All rights reserved Chapter 13: p.253 (center), p.254 Keith Brofsky/Getty Images/DAL Chapter 14: p.253 (left), p.272 ©Eyewire/ Photodisc/Punchstock/DAL Chapter 15: p.253 (right), p.288 ©Paul Conklin/ PhotoEdit Chapter 16: p.311 (left), p.312 Skip Nall/Getty Images/DAL Chapter 17: p.311 (right), p.332 Public Domain/DAL Chapter 18: p.351 (left), p.352 Keith Brofsky/ Getty Images/DAL Chapter 19: p.351 (right), p.367 The McGrawHill Companies, Inc /Lars A Niki, photographer Chapter 20: p.389 (left), p.390 Photolink/ Getty Images Chapter 21: p.389 (right), p.421 RF/Corbis/ DAL Chapter 22: p.445 (left), p.446 The McGrawHill Companies, Inc /Lars A Niki, photographer Chapter 23: p.445 (center), p.468 DigitalVision/ Punchstock/DAL Chapter 24: p.445 (right), p.488 Public Domain/DAL Chapter 25: p.509 The McGraw-Hill Companies/Andrew Resek, photographer Chapter 26: p.533 The McGraw-Hill Companies/Jill Braaten, photographer Chapter 27: p.545 (left), p.546 RF/Corbis/DAL Chapter 28: p.545 (middle), p.566 RF/Corbis/ DAL Chapter 29: p.545 (right), p.585 Corbis Chapter 30: p.599 (left), p.600 Associated Press Chapter 31: p.599 (middle), p.622 ©Mark Richards/PhotoEdit Chapter 32: p.599 (right), p.639 RF/Corbis/ DAL Chapter 33: p.657 (left), p.658 RF/Corbis/ DAL Chapter 34: p.657 (right) Ryan McVay/Getty Images/DAL Chapter 35: p.691 (left), p.692 F Schussier/ Photolink/Getty Images/DAL Chapter 36: p.691 (middle), p.715 Getty Images/DAL Chapter 37: p.691 (right), p 733 AFP/Getty Images PC1 sch11269_cre_PC1-PC2.indd PC1 7/26/07 12:28:24 PM www.freebookslides.com sch11269_cre_PC1-PC2.indd PC2 7/26/07 12:28:24 PM ... Today, one for The Macroeconomy Today, and one for The Microeconomy Today By clicking on the appropriate cover, users will link to a specific site for the version of the book they are using Proceeding... each case, the output of the economy reflects the collective behavior of the 300 million individuals who participate in the U.S economy We may not always be happy with the output of the economy. .. schools, the mission of the school, and the faculty The AACSB also charges schools with the obligation of doing assessment against their own content and learning goals While The Economy Today and