1. Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. CHAPTER 2 Taking an Economic Pulse: Measuring National Output

2. Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 2-1 Gross Domestic Product versus Gross National Product

3. Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 2-2 The Resource Market: Supply and Demand for Resources in the Circular Flow Diagram

4. Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 2-3 A Helpful Way to Conceptualize the Resource Market

5. Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 2-4 The Real Goods and Services Market: Supply and Demand for Real Goods and Services in the Circular Flow Diagram

6. Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 2-5 Supply and Demand in the Product Market and Resource Market of the Circular Flow Diagram

7. Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 2-6 Personal Consumption Expenditures: One Component of a Nation’s Demand

8. Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 2-7 U.S. Net Exports of Goods and Services: 1960–2005 Source: U.S. Department of Commerce, Bureau of Economic Analysis, data from Federal Reserve Bank of St. Louis, Economic Data—FRED, http://research.stlouisfed.org/fred2/series/BOPBGS/downloaddata (accessed January 3, 2006).

9. Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 2-8 Macroeconomic Equilibrium: Desired Demand Equals Desired Production

10. Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 2-9 Leakages of Saving from the Circular Flow

11. Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 2-10 Macroeconomic Leakages

12. Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 2-11 Macroeconomic Leakages and Injections

13. Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 2-12 Macroeconomic Equilibrium II: Desired Leakages Equal Desired Injections

14. Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 2-13 Using the Circular Flow to Explain a Recession

15. Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 2-14 Using the Circular Flow to Explain a Recession

16. Copyright© 2008 South-Western, a part of Cengage Learning. All rights reserved. Exhibit 2-15 Using the Circular Flow to Explain a Recession