Bài giảng Economics of Social Issues - Chapter 11 Economic Growth: Why is the Economic Road So Bumpy?

Chapter 11Economic Growth: Why is the Economic Road So Bumpy?Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinWhat Is Economic Growth?11-211-3The Rate of Economic Growth3% rate of growth2% rate of growth11-4United States Economic Growth3.26%4.4%3.3%3.1%3.1%2.3%11-5What Are Business Cycles?TimeReal GDPExpansionPeakContractionTroughShort-runfluctuationsLong-rungrowth trendLeading Economic Indicators IndexStock Market PricesReal Money SupplyAn Index of Consumer ExpectationsAverage Workweek for Production Workers in ManufacturingInterest Rate Spread (10-year Treasury bonds less federal funds)Initial claims for unemployment insuranceNew building permits grantedNew orders for consumer goods and materialsManufacturers’ orders for new plant and equipment (nondefense capital goods)Venders’ performance index for delivery of index11-611-7Theories of Business CyclesTheories of ExpectationsTheory of InnovationsInventory TheoriesMonetary TheoriesReal Business Cycle TheoriesExogenous Theories11-8The Determinants of Economic GrowthGood XGood YABCD11-9The Determinants of Economic GrowthConsumer GoodsCapital GoodsABCDEFHIG11-10The Determinants of Economic GrowthProductivity FactorsProductivity of labor = average product of laborHuman capitalTechnology11-11The Recent Slowdown in GrowthContributing FactorsTechnology SlowdownLabor Force FactorsSaving and InvestmentThe Composition of OutputGovernment: Regulation and Public DebtThe 2001 Recession The 2007 Peak and BeyondPercentage Change in Quarterly GDP in 2008 (Real 2000 Dollars)11-12