1. Fig. 1 Stages of Production $1.00 (Wood Chips) Lumber Mill $1.50 (Raw Paper) Paper Mill $2.25 (Notebook Paper) Office Supplies Manufacturer $3.50 (Notebook Paper) Wholesaler $5.00 (Notebook Paper) Retailer

2. Fig. 2 Real GDP Growth Rate, 1960-2003 -3 -2 0 1 2 3 4 5 6 7 8 GDP growth needed for constant unemployment rate GDP growth needed for constant output per capita Real GDP Growth Rate (Percent Change from Previous Period) Actual GDP growth rate 1960196519701975198019851990200019952003

3. Fig. 3 U.S. Quarterly Unemployment Rate, 1960-2003 196019651970197519801985199020001995 Unemployment Rate (Percent) 1 2 3 4 5 6 7 8 9 10 11 2003

4. Fig. 4 Actual and Potential GDP, 1960-2003 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Actual and Potential Real GDP (Billions of 1996 Dollars) 10,000 1960196519701975198019851990200019952003 Potential output Actual output

5. Fig. 5 How BLS Measures Employment Status Employed Worked one or more hours for pay? Unemployed Temporary layoff? Searched for work? Yes Not in Labor Force No

6. Fig. 6 Employment Status of the U.S. Population – June 2003 Employed137.7 Million Not in Labor Force Under 16 Military or Institutionalized Unemployed9.4 Million 73.9 Million 70 Million Civilian Noninstitutional Population Labor Force U.S. Population June 2003