CONTENTS Page ECONOMIC REPORT OF THE PRESIDENT. 1 ANNUAL REPORT OF THE COUNCIL OF ECONOMIC ADVISERS*. 7 Foreword. 11 Chapter 1. The American Economy: Responding to Chal¬ lenges. 21 Chapter 2. Recent Developments and the Economic Out¬ look. 35 Chapter 3. The American Labor Market. 81 Chapter 4. Government and the Level and Distribution OF Income. 115 Chapter 5. Competitive Forces and Regulation. 155 Chapter 6. Open International Markets and Prosperity ... 193 Chapter 7. Economic Statistics: Measuring Economic Per¬ formance. 239 Appendix A. Report to the President on the Activities of THE Council of Economic Advisers During 1991. 279 Appendix B. Statistical Tables Relating to Income, Em¬ ployment, AND Production. 291 * For a detailed table of contents of the Council’s Report, see page 13. (iii)