Introduction to Business and Marketing Objectives (45) Identify the measures / indicators of economic activity. Reminders Econ. Quiz #2 A -Friday 10/7 or B-Tuesday 10/11 Today’s Agenda QOTD Economic Indicators PowerPoint & Notes. Inflation WebQuest. CLOSURE Describe the relationship between the economic systems and the economic indicators.

Introduction to Business & Marketing Economic Indicators Introduction to Business & Marketing

Task 45 Identify the measures / indicators of economic activity.

How do you measure up? Student performance is measured by: GPA SAT Class Rank Baseball performance is measured by: Batting Average Strikeouts

Economic Indicators Economic indicators are figures used to measure a country’s economic performance We measure things like: how much a country produces whether a country’s economy is growing how a country’s economy compares to others There are many indicators. We will study GDP, inflation, and unemployment.

Gross Domestic Product GDP is the total value of the goods & services produced in a country in a given year. Sum of all goods & services sold by U.S. producers (businesses) We sell to: individual consumers, other businesses, government, and other countries.

What GDP Tells Us Changes in GDP show whether the economy is growing or slowing Commonly used to gauge a country’s standard of living

Measuring GDP One of the most important indicators of economy’s status! The U.S. has a very high GDP as compared to other countries. Examples China: $13.39 trillion Canada: $1.518 trillion North Korea: $40 billion Using 2013 estimates from the CIA World Factbook website: * United States #1 * China #3 * Canada #14 * North Korea #106

Inflation Rate Inflation is a general increase in the price of goods & services. Consumers’ buying power decreases because it costs more for something today than it did yesterday.

What Inflation Tells Us Indicates that the cost of living is getting more expensive! Most people usually get a 2-3% pay raise each year to offset an increase in the cost of living

What causes inflation? Supply < Demand May result from: War Price of imports Too much money in circulation War – scarce resources are transferred to the war effort, which means there is even less for consumers to buy Price of Imports – increases in cost of raw materials, production expenses, salaries, etc. Circulation – too much spending

Unemployment Rate Unemployment measures the number of people who are able & willing but cannot find work. Shows whether the economy is picking up or slowing down

Why does Northern Virginia experience smaller changes to the employment rate than other parts of the country? THINK ABOUT IT

What Unemployment Tells Us The unemployment rates shows whether the economy is picking up or slowing down. It is a lagging indicator.

Closing Task Describe the relationship between the stages of the business cycle and economic indicators.

Thu. October 15, 2015 Objectives (45) Identify the measures / indicators of economic activity. Reminders DECA FLC Trip THU 10/22 Econ. Unit Test FRI 10/23 Today’s Agenda BRO Time Daily Quiz The Business Cycle – 10 questions, 5 minutes, open notes! Economic Indicators PowerPoint & Notes. Inflation WebQuest. CLOSURE Describe the relationship between the stages of the business cycle and the economic indicators.