This is “End-of-Chapter Material”, section 3.5 from the book Theory and Applications of Macroeconomics (v. 1.0).
This book is licensed under a Creative Commons by-nc-sa 3.0 license. See the license for more details, but that basically means you can share this book as long as you credit the author (but see below), don't make money from it, and do make it available to everyone else under the same terms.
This content was accessible as of December 29, 2012, and it was downloaded then by Andy Schmitz in an effort to preserve the availability of this book.
Normally, the author and publisher would be credited here. However, the publisher has asked for the customary Creative Commons attribution to the original publisher, authors, title, and book URI to be removed. Additionally, per the publisher's request, their name has been removed in some passages. More information is available on this project's attribution page.
For more information on the source of this book, or why it is available for free, please see the project's home page. You can browse or download additional books there. You may also download a PDF copy of this book (29 MB) or just this chapter (2 MB), suitable for printing or most e-readers, or a .zip file containing this book's HTML files (for use in a web browser offline).
Understanding the meaning and measurement of macroeconomic variables is vital for your ability to evaluate the abundance of information you receive through various forms of the media about the state of the aggregate economy. The difficulties faced by the team of International Monetary Fund (IMF) economists with which we opened the chapter are not that different from the problems each of us faces in understanding what is happening in the economy.
The concepts and variables you have discovered in this chapter are used over and over again in the various applications discussed in this book. We use the concepts of real gross domestic product (real GDP), the inflation rate, the unemployment rate, and so forth almost everywhere in our study of macroeconomics.
Bureau of Labor Statistics (BLS): http://www.bls.gov
Which of the following variables are stocks? Which are flows?
Which of the following people are classified as unemployed?
Table 3.9 Data
|Price ($)||Quantity||Price ($)||Quantity||Price ($)||Quantity|
Using the data in the preceding table, reconstruct Table 3.1 "Calculating Nominal GDP" to calculate nominal GDP, Table 3.3 "Real GDP Using 2012 as the Base Year" to calculate real GDP, and Table 3.4 "Calculating the Price Index" to calculate a price index and the inflation rate.