ChapterTwo:
Useful Tools andConcepts
Our Tools for Understanding
Year
Unemployment Rate
Real GDP Growth Rate
2000
4.0%
4.1%
2001
4.7%
1.1%
2002
5.8%
1.8%
2003
6.0%
2.5%
2004
5.5%
3.5%
2005
5.1%
3.1%
2006
4.6%
2.7%
2007
4.6%
1.9%
2008
5.8%
-0.3%
2009
9.3%
-3.1%
2010
9.6%
2.4%
2011
8.9%
1.8%
2012
8.1%
2.2%
Table 2.1: Unemployment Rate and Real GDPGrowth Rate, United States, 2000-2012 (in percent)
Sources: U.S. Bureau of Economic Analysis, http://bea.gov/iTable/index_nipa.cfm ;U.S. Bureau of Labor Statistics,http://bls.gov/cps/cpsaat01.htm.
Figure 2.B1: Unemployment Rate, United States,2000-2012
Sources: United States Bureau of Labor Statistics, http://bls.gov/cps/cpsaat01.htm; United States Bureau of Economic Analysis,http://bea.gov/iTable/index_nipa.cfm.
2008 (5.8, -0.3)
Figure 2.B2: Relationship between Unemploymentand GDP Growth Rate, United States, 2000-2012
Sources: United States Bureau of Labor Statistics,http://bls.gov/cps/cpsaat01.htm; United States Bureau of Economic Analysis,http://bea.gov/iTable/index_nipa.cfm.
Figure 2.B3: Relationship between GDP Growth Rateand Greenhouse Gas Emissions Growth Rate,United States, 1990-2012
Source: Greenhouse Gas data from United States Environmental Protection Agency, http://www.epa.gov/climatechange/ghgemissions/usinventoryreport.html.
Different Economic Theories:Examples of Two Basic Models
Factor Markets
Product Markets
Land, Labor, and Capital Services
Produced Goods and Services
Wages, Rents,
Interest, and Profits
Payments for
Produced Goods
and Services
Households
Firms
Figure 2.1: The Circular Flow Diagram for the BasicNeoclassical Model
Figure 2.2: Economics in Context
Figure 2.3: Estimated Size of the Three Spheres ofEconomic Activity in the United States, 2010
Sources: U.S. Census Bureau, Statistical Abstract of the United States, 2012 (Washington, D.C.: GPO, 2011); Katie Roeger, Amy S. Blackwood, and Sarah L.Pettijohn, The Nonprofit Almanac 2012 (Washington, D.C.: Urban Institute Press, 2012); and authors’ calculations.
