10 7 2009 Important Economic Statistics year Gross Domestic Product GDP the dollar value of all goods and services produced in a o 2 4 GDP growth per year is desirable o Present US GDP is about 15 trillion per year o Over the last 10 years US GDP has an average 2 3 growth o Over the last 10 years China has averaged 8 10 GDP growth Japan in 60s did the same thing o 16 of US GDP is in healthcare Per capita GDP is the value of each individuals output o GDP Population Per capita GDP o US 50 000 Gross National Product similar to the GDP except the GNP includes the value of what americans working in foreign countries produce Government and the Economy faire government Prior to the New Deal 1932 1940 the dominant thinking in the US supported laissez Most americans believed that the economy was self regulating and business cycles recession depression inflation would cure themselves and eventually reach equilibrium Great Depression GD 1929 1940 High unemployment 25 of those looking for work were unemployed caused by excessive productive capacity or under consumption an unbalance between supply and demand The stock market crash made the GD more severe and made it last longer Hoover 1928 1932 Classical Liberalism who believed strongly in laissez faire capitalism FDR 1932 1940 New Deal Modern Liberal Under FDR the national government created various programs to put people to work WPA CCC John Maynard Keynes 2nd most influential economists Believed that the government could and should take steps to cure business cycles Advocated massive governemt spending to cure a depression 10 7 2009 priming the pump you have to spend money to make money Argued that if necessary government should engage in deficit spending The GD did not end until 1940 when the US started selling munitions etc to the British in WWII Recession a drop in the GDP for 2 consecutive quarters Inflation the process where by a commodity increases in price with out increasing in real value In the US the consumer price index or CPI is used to measure the rate of inflation
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