Economic Indicators
Answer in a complete sentence Success Criteria 3/30/2017 1.We can identify the meaning of economic indicators. 2.We can compare and contrast the economic indicators. 3.We can analyze text to understand the difference between an economic expansion and an economic recession. 4.We can evaluate the strength of the economy at different times by analyzing data. Answer in a complete sentence What is a mixed economy? What would America be like if we just had a market economy? What would it be like if we only had a command economy?
House Cleaning Economics HW is due Tuesday the 4th!! With this extra time EVERYONE should have it done (one of your first grades for fourth quarter) No Unit 6 Test – Quiz Tomorrow! Quiz next Thursday April 6th My gradebook is closing Today! Notebook Quiz from 3/3 Unit 5 Exam 7 more school days until break, so don’t act like a clown
How do we know if our economy is doing well How do we know if our economy is doing well? How do you think the economy is doing? Why do you think that?
Mixed Economy Which type of economy does the United States have? What are the characteristics of this? System where businesses and property are owned by citizens, BUT they are regulated by the government
Business Cycle All economies go through periods of growth and decline Expansion is when the economy is growing Recession is when the economy is shrinking
How Do We Measure the Economy? We use the Gross Domestic Product, or GDP GDP is the total value of all goods and services made within a country in a year. The higher your GDP, the better your economy is doing (based on the size of your country)
Ford is an American company, and it makes its cars in America Samsung is a Korean company, and it makes its phones in Korea
So, the more things made in your country, the higher your GDP Apple is an American company, and it makes its phones in China So, the more things made in your country, the higher your GDP
So, the more things made in YOUR country, the higher your GDP Pennzoil is an American company, and it pumps oil from Saudi Arabia So, the more things made in YOUR country, the higher your GDP
Pedro just recently retired and his enjoying all of his free time. Unemployment Rate The number of people who do not have a job who are LOOKING for a job 5% is OK, but more than 10% unemployment is BAD Larry is 25 years old and was laid off from his job. He spends his time searching classified ads for a new one. Pedro just recently retired and his enjoying all of his free time. Brenda has become frustrated about not finding a job, so she has given up. Counts! Does not count! Does not count!
CPI Measures the average price of consumer goods If the CPI goes UP, it means goods are getting more expensive This is called INFLATION Some inflation is OK, but too much is bad
Expansion Recession GDP is going up Unemployment is going down People spend money and businesses make more things GDP is going down Unemployment is going up People don’t spend money and businesses stop making things
Business Cycle Expansion Recession
Business Cycle Expansion Recession
Business Cycle Inflation Deflation
Business Cycle Inflation Deflation
Business Cycle Recession Expansion
Recession and Expansion
Quick 5 3/30 During which years is this economy experiencing a recession? How do you know? During which years is this economy experiencing an expansion? How do you know? What would it have been like to graduate from high school in 1980? How would the economy have affected your search for a job?