a.

Source: U.S. Bureau ofEconomics Analysis.

To show the changes more clearly, we can calculate thelogarithm of real GDP and plot real GDP on a logarithmic scale as follows:

Real GDP plotted on alogarithmic scale.

We can identify some historical episodes:      

1929-1933    Great Depression      

1941-1945    World War Ⅱ      

1950-1953    Korean War      

1961-1973    Vietnam War      

1973      Oil Crisis – First oil price shock      

1979      Energy Crisis – Second oil price shock      

2011      911 attacks      

2007-2009    Financial CrisisThe second plot is more informative.

Because real GDPmeasures the value of goods and services at a constant set of prices and wouldnot be influenced by changes in prices, real GDP provides a better measure ofeconomic well-being than nominal GDP.
b.

Source: U.S. Bureau ofEconomics Analysis.

By comparing annual data of consumption and GDP, we can find thatconsumption and GDP are changing in the same trend.

c.

Source: U.S. Bureau ofEconomics Analysis.

The ratio of labor payments to total personal incomeis almost a constant, fluctuating slightly around 0.7.

d.

Source: National Bureau ofStatistics of China.

Source: Calculated basedon nominal GDP and GDP deflator from National Bureau of Statistics of China.

Source: Calculated basedon data about Consumption, Government Expenditure and Investment from RESSET and GDP deflator from NationalBureau of Statistics of China.

Source: Calculated basedon data about Per Capita Total Income (Urban/Rural), Urban Population, RuralPopulation and Compensation of Employees from RESSET.

e.

GDP Per Capita (Current US$) of SomeCountries (2011)

Country	GDP (Current  US$)	Population	GDP Per Capita
China	7,318,499,269,769	1,344,130,000	5444.78530
United  States	14,991,300,000,000	311,591,917	48111.96691
Japan	5,867,154,491,918	127,817,277	45902.67161
Thailand	345,672,232,116	69,518,555	4972.37367
India	1,847,976,748,681	1,241,491,960	1488.51286
Russian  Federation	1,857,769,676,144	141,930,000	13089.33753
Singapore	239,699,598,462	5,183,700	46241.02445
Australia	1,379,382,221,955	22,620,600	60979.02894
Argentina	446,044,143,596	40,764,561	10941.95872
Iceland	14,026,172,280	319,000	43969.19210
Canada	1,736,050,505,051	34,482,779	50345.43489
Denmark	333,616,014,898	5,574,000	59852.17347
Tanzania	23,874,165,047	46,218,486	516.55013
Afghanistan	19,176,772,040	35,320,445	542.93688

Source: The WorldBank.http://data.worldbank.org/indicator/NY.GDP.MKTP.CD
http://data.worldbank.org/indicator/SP.POP.TOTL
By comparing, we can find that theUnited States is a high-income country, while China is a upper-middle-incomecountry.