Managing in a global economy by john marthinsen babson MBA chapter 04

Inflation, Real GDP, and Business Cycles... Coverage Differences among the GDP Price Index,Consumer Price Index, and Producer Price Index... Department of Labor, Table 1, ‘‘Consumer Pric

Where’s the Beef? Inflation, Real GDP, and Business Cycles

Price Changes

Coverage Differences among the GDP Price Index,

Consumer Price Index, and Producer Price Index

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,’’ http://www.bls.gov/

news.release/cpi.t01.htm (accessed October 27, 2006).

England: Consumer Price Index, 1985–2005

Examples of Countries with Very High Inflation Rates, 1973–1991

Source: International Monetary Fund, The World Economic Outlook Database, http://www.imf.org/external/

pubs/ft/weo/2000/02/data/pcpi_a.csv (accessed January 14, 2006).

Bolded figures are annual inflation rates over 1,000% per year.

Real versus Nominal GDP

Calculating Real GDP Using Nominal GDP and

Price Index

Recessions and Expansions During the Business Cycle

Leading Indicators Worldwide, May 30, 2006

Source: The Conference Board, http://www.conference-board.org (accessed May 30, 2006).

Indicators

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,

http://research.stlouisfed.org/fred2/series/GDPC1/downloaddata (accessed September 6, 2006).

Differences in Business Cycles: 1947–1982 versus 1982–2006