Web Links

• p. 173: Go to http://www.bea.gov/ for the most up-to-date U.S. economic data at the Web site of the Bureau of Economic Analysis.
• p. 180: Go to http://research.stlouisfed.org/fred2/ to examine recent trends in U.S. GDP and its components.

Issues and Applications Web Resources:

• To read a discussion of reasons why rising incomes do not necessarily make people happier, use the link http://www.economist.com/finance/displayStory.cfm?story_id=1974139.
• For an examination of the pros and cons of GDP and other possible measures of a nation’s average standard of living, go to http://www.bos.frb.org/education/ledger/ledger03/winter/measure.pdf.

Tracking the Components of Gross Domestic Product
One way to keep tabs on the components of GDP is via the FRED database at the Web site of the Federal Reserve Bank of St. Louis.

     Title: Gross Domestic Product and Components

     Navigation: Use http://research.stlouisfed.org/ to visit the home page of the Federal Reserve Bank of Saint Louis. Click on Economic Data: FRED II. Then click on Gross Domestic Product and Components.

Application

1. Click on Gross Domestic Product. Write down nominal GDP data for the past 10 quarters.

2. Back up to Real Gross Domestic Product in Fixed 2000 Dollars. Write down the amounts for the past 10 quarters. Use the formula on page 184 to calculate the price level for each quarter. Has the price level decreased or increased in recent quarters?