The Macroeconomic Perspective Unit 3, Lesson 1

The Macroeconomic Perspective Macroeconomic Perspective: Looking at the overall aspects and workings of a national economy. What are the major goals the national economy? Stable prices Low unemployment Economic growth

The Macroeconomic Perspective Key Measures of the National Economy Gross Domestic Product (GDP) Unemployment Rate Consumer Price Index (CPI)

Questions for Consideration How do these images relate to the national economy? Looking at the collage, what economic challenges do you see arising in the United States?

Macroeconomic Challenges Issues that arise in a national economy that affect many communities across the country What challenges do we face in today’s economy? (student responses) Home foreclosures, banking crisis, high unemployment, high personal and national debt

How is our economy doing? Some Statistical Measurements: Employment declined by 800,000 jobs in January of 2010 and the U.S. unemployment rate at around 10% percent. Consumer spending declined by 8% in Jan . 2010 Economic growth (GDP) decreased 0.7 percent. (Oct. 29, 2009) What do these statistics reveal about our economy? Do you expect that production will grow, remain the unchanged, or decline in the next year? For additional stats go to http://www.bls.gov: http://www.economagic.com/em-cgi/find.exe/form; http://www.econedlink.org/lessons/

Why does Macroeconomics matter? Businesses: Understanding macroeconomic trends helps businesses be responsive to the environment in which they compete Households/ Consumers: Understanding macroeconomic trends helps people make informed decisions about personal finance and voting. Is this a good time to buy a car? Refinance your home? Change to a new job? Go to college? How candidates and their policies affect my economic well-being