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Contemporary Economics: An Applications Approach By Robert J. Carbaugh 2nd Edition

Contemporary Economics: An Applications Approach By Robert J. Carbaugh 2nd Edition. Chapter 10: Gross Domestic Product and Economic Growth. Gross Domestic Product. International comparisons of GDP. Some international comparisons of GDP, 1999. GDP = C + I + G + (X - M). GDP GDP

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Contemporary Economics: An Applications Approach By Robert J. Carbaugh 2nd Edition

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  1. Contemporary Economics:An Applications ApproachBy Robert J. Carbaugh2nd Edition Chapter 10: Gross Domestic Product and Economic Growth

  2. Gross Domestic Product International comparisons of GDP Some international comparisons of GDP, 1999 GDP = C + I + G + (X - M) GDP GDP Nation (billions) per person* Gross Domestic Product = Personal consumption (C) + Gross private domestic investment (I) + Government purchases of goods and services (G) + Net exports (exports - imports) [X-M] United States $8,708.9 $30,600 Switzerland 260.3 27,486 Japan 4,395.1 24,041 Canada 612.0 23,725 Mexico 475.0 7,719 Russia 375.3 6,339 Togo 1.5 1,346 Zambia 3.3 686 Ethiopia 6.5 599 Sierra Leone 0.7 414 * measured at purchasing power parity Carbaugh, Chap. 10

  3. Gross Domestic Product Components of US GDP, 2000 Amount PercentComponent of GDP(billions)of total Disposition of household income $6,757.3 68% Durable goods 820.3 Non-durable goods 2,010.0 Services 3,927.0 Gross private domestic investment 1,832.7 19% Fixed investment (plant, equipment) 1,778.2 Business inventories 54.5 Government purchases of goods and services 1,743.7 17% Federal 595.1 State and local 1,148.6 Net exports of goods and services -370.6 -4% Exports 1,097.4 Imports 1,468.0 Gross Domestic Product 9,963.1 100 Carbaugh, Chap. 10

  4. Gross Domestic Product Nominal GDP, real GDP, and deflator Nominal and real GDP, 1990-2000 Nominal GDP Real GDP GDP deflator Year (billions) (billions) (1996=100) 1990 5803.2 6707.9 86.5 1991 5986.2 6676.4 89.7 1992 6318.9 6880.0 91.8 1993 6642.3 7062.6 94.0 1994 7054.3 7347.7 96.0 1995 7400.5 7543.8 98.1 1996 7813.2 7813.2 100.0 1997 8318.4 8159.5 101.9 1998 8790.2 8515.7 103.2 1999 9299.2 8875.8 104.8 2000 9963.1 9318.5 106.9 Carbaugh, Chap. 10

  5. Gross Domestic Product Economic growth Years required to double GDP, beginning in 1960, for selected nations Carbaugh, Chap. 10

  6. Economic Growth Productivity trends Annual rates of growth in US labor productivity and real hourly earnings 1960-1999 Labor productivity Real hourly earnings Year growth rate growth rate 1960s (avg.) 3.2% 2.9% 1970s (avg.) 1.8 1.3 1980s (avg.) 1.2 0.2 1990-94 (avg.) 1.6 0.8 1995 0.7 -0.4 1996 2.8 0.4 1997 2.1 0.7 1998 2.7 3.9 1999 3.1 2.9 Source: Economic Report of the President, 2001; US Dept. of Commerce, Bureau of the Census, Statistical Abstract of the US Carbaugh, Chap. 10

  7. Economic Growth Computer technology bolsters US economic growth Annual contribution to productivity growth (%) Technological Gains: each sector's contribution to technological gains Carbaugh, Chap. 10

  8. Economic Growth: Role of Government Research & Development Expenditures as a share of GDP, 1998 Source: US Dept. of Commerce, Bureau of the Census, Statistical Abstract of the US, 2000 Carbaugh, Chap. 10

  9. Economic Growth: Role of Government Impact of education, trade and infrastructure Impact of education, openness to trade, and telecommunications infrastructure on economic growth in seventy-four countries, 1965-95 Growth of GDP per Capita (percent per year) Source: World Bank, World Development Report, 1999 Carbaugh, Chap. 10

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