1. CHAPTER 4 ECONOMIC MEASUREMENTS See NBER.org

2. MEASURING ECONOMIC GROWTH A STEADY INCREASE IN PRODUCTION OF GOODS AND SERVICES 7% OF WORLD’S LAND; 5% OF POPULATION; MORE THAN 20% OF ALL GOODS AND SERVICES PRODUCED WE ARE PRODUCTIVE!!!

3. GROSS DOMESTIC PRODUCT (GDP) THE TOTAL DOLLAR VALUE OF ALL FINAL GOODS AND SERVICES PRODUCED IN ONE YEAR INDIVIDUALS, BUSINESS, AND GOVT. COMPARE GDP FROM YEAR TO YEAR CONSTANT DOLLAR GDP--VALUE OF GDP AFTER TAKING OUT EFFECT OF PRICE CHANGES

4. GDP PER CAPITA GDP TOTAL POPULATION IF GDP STAYS THE SAME AND THE POPULATION INCREASES THE GDP PER CAPITAL WILL SHOW A WEAKENING ECONOMY

5. LABOR PRODUCTIVITY MEASURED IN ITEMS PRODUCED PER WORKER IN LAST 25 YEARS, RATE OF GROWTH HAS GONE UP AND DOWN CONCERN FOR WAGES INCREASING MORE THAN PRODUCTIVITY PRODUCTIVITY INCREASES WITH INCREASE IN SKILLS, IMPROVED METHODS AND TECHNOLOGY

6. THE BUSINESS CYCLE TROUGH PEAK CONTRACTION EXPANSION

7. THE BUSINESS CYCLE RECURRING UPS AND DOWNS OF GDP PROSPERITY--HIGH POINT OF THE BUSINESS CYCLE RECESSION--ECONOMY SLOWS DOWN (DEMAND DECREASES, LOWER PRODUCTIVITY, UNEMPLOYMENT RISES, GDP GROWTH SLOWS FOR 2 OR MORE QUARTERS

8. INFLATION AND DEFLATION INFLATION--SUSTAINED INCREASE IN THE GENERAL LEVEL OF PRICES MILD INFLATION (2-3%) CAN STIMULATE ECONOMIC GROWTH DEFLATION--DECREASE IN PRICES; USUALLY OCCURS DURING RECESSIONS AND DEPRESSIONS

9. OUR ECONOMIC FUTURE NEW TECHNOLOGIES FINDING SOLUTIONS TO ECONOMIC PROBLEMS EVER-CHANGING SOCIETY CONCERN TO INCREASE OR MAINTAIN STANDARD OF LIVING WORLD EVENTS (EX. SEPT 11)