Copyright ©2001, South-Western College Publishing Contemporary Economics: An Applications Approach By Robert J. Carbaugh 1st Edition Chapter 10: Gross Domestic Product and Economic Growth

Carbaugh, Chap International comparisons of GDP Gross Domestic Product GDP Nation(billions)per person* United States$7,690$28,740 Germany2,32021,300 Japan4,72223,400 Canada58421,860 Australia38020,170 United Kingdom1,22020,520 France1,52621,860 Mexico3498,120 Malaysia9810,920 India3741,650 * measured at purchasing power parity Some international comparisons of GDP, 1997 GDP = C + I + G + (X - M) Gross Domestic Product = Personal consumption (C) + Gross private domestic investment (I) + Government purchases of goods and services (G) + Net exports (exports - imports) [X-M]

Carbaugh, Chap Components of US GDP, 1998 Gross Domestic Product AmountPercent Component of GDP (billions) of total Disposition of household income$5, % Durable goods724.7 Non-durable goods1,662.4 Services3,420.8 Gross private domestic investment1, % Fixed investment (plant, equipment)1,307.8 Business inventories59.3 Government purchases of goods and services1, % Federal520.6 State and local966.6 Net exports of goods and services % Exports959.0 Imports-1,110.2 Gross Domestic Product8,

Carbaugh, Chap Nominal GDP, real GDP, and deflator Gross Domestic Product Nominal GDPReal GDPGDP deflator Year(billions)(billions)(1992=100) 1985$4,180.7$5, , Nominal and real GDP,

Carbaugh, Chap Economic growth Gross Domestic Product SourcesAverage annual of growthpercentage rates Capital growth0.56 Labor growth1.34 Technological progress1.02 Growth in output2.92 Sources of US economic growth,

Carbaugh, Chap Productivity slowdown Economic Growth Labor productivityReal hourly earnings Yeargrowth rategrowth rate 1960s (avg.)3.2%2.9% 1970s (avg.) s (avg.) Annual rates of growth in US labor productivity and real hourly earnings Source: US Dept. of Commerce, Bureau of the Census, Statistical Abstract of the US, 1998

Carbaugh, Chap Research & Development Expenditures as a share of GDP, 1996 Economic Growth: Role of Government

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

Carbaugh, Chap East Asian economies' growth rates Economic Growth GDP per capita*GDP growthannual average % (1997 dollars) Hong Kong24,5406.9%5.3% Singapore29, South Korea13, Malaysia10, Thailand6, Indonesia3, China3, Philippines3, Rich industrial countries21, * at purchasing power parity Source: World Bank, World Development Report 1998/99