CHAPTER 4
Where’s the Beef? Inflation, Real GDP, and Business Cycles
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Exhibit 4-1
Inflation Rate: Weighted Average of Percentage
Price Changes
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reserved.
Exhibit 4-2
Coverage Differences among the GDP Price Index,
Consumer Price Index, and Producer Price Index
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Exhibit 4-3
U.S. Consumer Price Index Categories, 2006
Source: U.S. Department of Labor, Table 1, ‘‘Consumer Price Index for All Urban Consumers (CPI-U): U.S. City
Average, by Expenditure Category and Commodity and Service Group,’’ />news.release/cpi.t01.htm (accessed October 27, 2006).
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reserved.
Exhibit 4-4
England: Consumer Price Index, 1985–2005
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reserved.
Exhibit 4-5
Measuring Compound Annual Inflation Rates
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Exhibit 4-6
Examples of Countries with Very High Inflation Rates, 1973–1991
Source: International Monetary Fund, The World Economic Outlook Database, />pubs/ft/weo/2000/02/data/pcpi_a.csv (accessed January 14, 2006).
Bolded figures are annual inflation rates over 1,000% per year.
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reserved.
Exhibit 4-7
Real versus Nominal GDP
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reserved.
Exhibit 4-8
Real versus Nominal GDP
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reserved.
Exhibit 4-9
Deriving the Price Index: Base Year = 2000
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reserved.
Exhibit 4-10
Calculating Real GDP Using Nominal GDP and
Price Index
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Exhibit 4-11
U.S. Nominal GDP, GDP Price Index, and Real GDP, 1980–2005
Source: Bureau of Economic Analysis, National Economic Accounts, />gdp.htm (accessed March 28, 2006).
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reserved.
Exhibit 4-12
Recessions and Expansions During the Business Cycle
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reserved.
Exhibit 4-13
Procyclical, Countercyclical, and Acyclical Macroeconomic Variables
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reserved.
Exhibit 4-14
Leading Indicators Worldwide, May 30, 2006
Source: The Conference Board, (accessed May 30, 2006).
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reserved.
Exhibit 4-15
U.S. Leading Economic
Indicators
Source: The Conference Board, ‘‘Leading Economic Indicators and Related Composite Indexes,’’
(accessed January 21, 2006).
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reserved.
Exhibit 4-16
U.S. Recessions and Movements in U.S. Real GDP:
1947 (I) To 2006 (II)
Source: Data from Federal Reserve Bank of St. Louis, Economic Data—FRED,
(accessed September 6, 2006).
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reserved.
Exhibit 4-17
U.S. Business Cycle Expansions and Contractions: 1945–2006
Source: National Bureau of Economic Research, ‘‘Business Cycle Expansions and Contractions,’’
(accessed September 6, 2006).
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reserved.
Exhibit 4-18
Differences in Business Cycles: 1947–1982 versus
1982–2006
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reserved.