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Essentials Ofessentials 3e economics essentials of Building on the tremendous success of their best-selling Economics, Brue, McConnell, and Flynn provide a fresh, student-oriented alternative for the one- essentials of semester survey of economics course with Essentials of Economics. The third edition presents a patient, substantive treatment of micro and macro topics appropriate for the introductory economics student, and fully integrated in the digital environment to provide instant remediation and feedback through McGraw-Hill’s innovative assessment tool Connect® Plus. economics Focus on Core Models Essentials of Economics stresses the importance of the economic perspective though shortened and simplified explanations and the streamlined application of core economic models. Updated Macro Discussion BRue | mcConnell | FlYNN | mcConnell BRue New discussions of the Financial Crisis and Recession show the relevance of economic models to current news and events. MD DALIM #1216266 11/18/12 Adaptive Digital Tools McGraw-Hill’s adaptive learning component, LearnSmart, available within Connect Economics, provides a seamless combination of practice, assessment, and remediation for core concepts in the course. This intelligent software adapts to every response and automatically delivers concepts that advance understanding, while reducing time devoted to concepts already mastered. CYAN 3e MAG STanley l. BrUE YELO CampBell r. mcConnell BLK ISBN 978-0-07-351145-0 MHID 0-07-351145-5 Sean m. FlYNN EAN www.mhhe.com RELEVANT ECONOMIC STATISTICS, UNITED STATES, 1970–1990 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1 Gross domestic product (billions of dollars) 1,038.5 1,127.1 1,238.3 1,382.7 1,500.0 1,638.3 1,825.3 2,030.9 2,294.7 2,563.3 2,789.5 3,128.4 3,255.0 3,536.7 3,933.2 4,220.3 4,462.8 4,739.5 5,103.8 5,484.4 5,803.1 2 Real gross domestic product (billions of 4,266.3 4,409.5 4,643.8 4,912.8 4,885.7 4,875.4 5,136.9 5,373.1 5,672.8 5,850.1 5,834.0 5,982.1 5,865.9 6,130.9 6,571.5 6,843.4 7,080.5 7,307.0 7,607.4 7,879.2 8,027.1 2005 dollars) 3 Economic growth rate (percent change in 0.2 3.4 5.3 5.8 0.5 0.2 5.3 4.6 5.6 3.2 0.2 2.5 1.9 4.5 7.2 4.1 3.5 3.4 4.1 3.5 1.9 real GDP) 4 Consumption expenditures (billions 648.5 701.9 770.6 852.4 933.4 1,034.4 1,151.9 1,278.6 1,428.5 1,592.2 1,757.1 1,941.1 2,077.3 2,290.6 2,503.3 2,720.3 2,899.7 3,100.2 3,353.6 3,598.5 3,839.9 of dollars) 5 Gross private domestic investment 152.4 178.2 207.6 244.5 249.4 230.2 292.0 361.3 438.0 492.9 479.3 572.4 517.2 564.3 735.6 736.2 746.5 785.0 821.6 874.9 861.0 (billions of dollars) 6 Government purchases (billions of dollars) 233.8 246.5 263.5 281.7 317.9 357.7 383.0 414.1 453.6 500.8 566.2 627.5 680.5 733.5 797.0 879.0 949.3 999.5 1,039.0 1,099.1 1,180.2 7 Rate of inflation (percent change in CPI) 5.7 4.4 3.2 6.2 11.0 9.1 5.8 6.5 7.6 11.3 13.5 10.3 6.2 3.2 4.3 3.6 1.9 3.6 4.1 4.8 5.4 8 Money supply, M1 214.4 228.3 249.1 262.9 274.2 287.1 306.2 330.9 357.3 381.8 408.5 436.7 474.8 521.4 551.6 619.8 724.6 750.2 786.6 792.8 824.8 9 Federal funds interest rate (%) 7.17 4.67 4.44 8.74 10.51 5.82 5.05 5.54 7.91 11.20 13.35 16.39 12.24 9.09 10.23 8.10 6.80 6.66 7.57 9.21 8.10 10 Prime interest rate (%) 7.91 5.73 5.25 8.03 10.81 7.86 6.84 6.83 9.06 12.67 15.26 18.87 14.85 10.79 12.04 9.93 8.33 8.21 9.32 10.87 10.01 11 Population (millions) 205.0 207.7 209.9 211.9 213.8 216.0 218.0 220.2 222.6 225.1 227.8 230.0 232.2 234.3 236.3 238.5 240.7 242.8 245.0 247.3 250.1 12 Immigration (thousands) 373.3 370.5 384.7 400.1 394.9 386.2 398.6 462.3 601.4 460.3 530.6 596.6 594.1 559.8 543.9 570.0 601.7 601.5 643.0 1,091.0 1,536.5 13 Labor force (millions) 82.8 84.4 87.0 89.4 91.9 93.8 96.2 99.0 102.3 105.0 106.9 108.7 110.2 111.6 113.5 115.5 117.8 119.9 121.7 123.9 125.8 14 Employment (millions) 78.7 79.4 82.2 85.1 86.8 85.8 88.8 92.0 96.0 98.8 99.3 100.4 99.5 100.8 105.0 107.2 109.6 112.4 115.0 117.3 118.8 15 Unemployment rate (%) 4.9 5.9 5.6 4.9 5.6 8.5 7.7 7.1 6.1 5.8 7.1 7.6 9.7 9.6 7.5 7.2 7.0 6.2 5.5 5.3 5.6 16 Federal budget surplus () or deficit () 2.8 23.0 23.4 14.9 6.1 53.7 73.7 53.7 59.2 40.7 73.8 79.0 128.0 207.8 185.4 212.3 221.2 149.7 155.2 152.6 221.1 17 Public debt (billions of dollars) 380.9 406.2 435.9 466.3 483.9 541.9 629.0 706.4 776.6 829.5 909.0 994.8 1,137.3 1,371.7 1,564.6 1,817.4 2,120.5 2,346.0 2,601.1 2,867.8 3,206.3 18 Price of crude oil (dollars per barrel) 3.39 3.60 2.85 4.75 9.25 12.21 13.10 14.40 14.95 25.10 37.42 35.75 31.83 29.08 28.75 26.92 14.44 17.75 14.87 18.33 23.19 19 Average hourly earnings, private 3.63 3.90 4.14 4.43 4.73 4.73 5.06 5.44 5.87 6.33 6.84 7.43 7.86 8.19 8.48 8.73 8.92 9.13 9.43 9.80 10.19 nonagricultiral industries (dollars) 20 Average weekly hours, private 37.0 36.8 36.9 36.9 36.4 36.0 36.1 35.9 35.8 36.6 35.2 35.2 34.7 34.9 35.1 34.9 34.7 34.7 34.6 34.5 34.3 nonagriculatural industries 21 After-tax manufacturing profits per dollar 4.0 4.1 4.3 4.7 5.5 4.6 5.4 5.3 5.4 5.7 4.8 4.7 3.5 4.1 4.6 3.8 3.7 4.9 5.9 4.9 3.9 of sales (cents)* 22 Industry research and development 17.6 17.8 19.0 20.7 22.2 23.5 26.1 28.9 32.2 37.1 43.2 43.2 57.2 63.7 73.1 82.4 85.9 90.2 94.9 99.9 107.4 expenditures (billions of dollars) 23 Net farm income (billions of dollars) 14.4 15.0 19.5 34.4 27.3 25.5 20.2 19.9 25.2 27.4 16.1 26.9 23.8 14.3 26.0 28.5 31.1 38.0 39.6 46.5 46.3 24 Federal minimum wage (dollars per hour) 1.60 1.60 1.60 1.60 2.00 2.10 2.30 2.30 2.65 2.90 3.10 3.35 3.35 3.35 3.35 3.35 3.35 3.35 3.35 3.35 3.80 25 Poverty rate (% of population) 12.6 12.5 11.9 11.1 11.2 12.3 11.8 11.6 11.4 11.7 13.0 14.0 15.0 15.2 14.4 14.0 13.6 13.4 13.0 12.8 13.5 26 Gini ratio for household income distribution** 0.394 0.396 0.401 0.397 0.395 0.397 0.398 0.402 0.402 0.404 0.403 0.406 0.412 0.414 0.415 0.419 0.425 0.426 0.427 0.431 0.428 27 Productivity growth, business sector (%) 2.0 4.1 3.2 3.0 1.6 3.5 3.1 1.7 1.1 0.0 0.2 2.1 0.8 3.6 2.7 2.3 3.0 0.6 1.5 1.0 2.0 28 Trade surplus () or deficit () (billions of dollars) 2.3 1.3 5.4 1.9 4.3 12.4 14.8 27.2 29.8 24.6 19.4 16.2 24.2 57.8 109.1 121.9 138.5 151.7 114.6 93.1 80.9 *Revised definition of this series beginning in 1973.
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