1. Chapter Two: Useful Tools and Concepts

2. Our Tools for Understanding

3. YearUnemployment RateReal GDP Growth Rate 20004.0%4.1% 20014.7%1.1% 20025.8%1.8% 20036.0%2.5% 20045.5%3.5% 20055.1%3.1% 20064.6%2.7% 20074.6%1.9% 20085.8%-0.3% 20099.3%-3.1% 20109.6%2.4% 20118.9%1.8% 20128.1%2.2% Table 2.1: Unemployment Rate and Real GDP Growth Rate, United States, 2000-2012 (in percent) Sources: U.S. Bureau of Economic Analysis, http://bea.gov/iTable/index_nipa.cfm ;U.S. Bureau of Labor Statistics, http://bls.gov/cps/cpsaat01.htm.

4. Figure 2.B1: Unemployment Rate, United States, 2000-2012 Sources: United States Bureau of Labor Statistics, http://bls.gov/cps/cpsaat01.htm; United States Bureau of Economic Analysis, http://bea.gov/iTable/index_nipa.cfm.

5. 2008 (5.8, -0.3) Figure 2.B2: Relationship between Unemployment and GDP Growth Rate, United States, 2000-2012 Sources: United States Bureau of Labor Statistics,http://bls.gov/cps/cpsaat01.htm; United States Bureau of Economic Analysis, http://bea.gov/iTable/index_nipa.cfm.

6. Figure 2.B3: Relationship between GDP Growth Rate and Greenhouse Gas Emissions Growth Rate, United States, 1990-2012 Source: Greenhouse Gas data from United States Environmental Protection Agency, http://www.epa.gov/ climatechange/ghgemissions/usinventoryreport.html.

7. Different Economic Theories: Examples of Two Basic Models

8. Factor Markets Product Markets Land, Labor, and Capital Services Produced Goods and Services Wages, Rents, Interest, and Profits Payments for Produced Goods and Services Households Firms Figure 2.1: The Circular Flow Diagram for the Basic Neoclassical Model

9. Figure 2.2: Economics in Context

10. Figure 2.3: Estimated Size of the Three Spheres of Economic Activity in the United States, 2010 Sources: U.S. Census Bureau, Statistical Abstract of the United States, 2012 (Washington, D.C.: GPO, 2011); Katie Roeger, Amy S. Blackwood, and Sarah L. Pettijohn, The Nonprofit Almanac 2012 (Washington, D.C.: Urban Institute Press, 2012); and authors’ calculations.