Introduction to Business © Thomson South-Western ChapterChapter Economic Activity Measuring Economic Activity Economic Conditions Change Other Measures of Business Activity 2

Introduction to Business © Thomson South-Western Chapter 2 Slide 2 LESSON 2-1 LESSON 2-1 Measuring Economic Activity Goals Define gross domestic product. Describe economic measures of labor. Identify economic indicators for consumer spending.

Introduction to Business © Thomson South-Western Chapter 2 Slide 3 Key Terms Gross Domestic Product (GDP) GDP per capita unemployment rate productivity personal income retail sales

Introduction to Business © Thomson South-Western Chapter 2 Slide 4 GROSS DOMESTIC PRODUCT (GDP) Components of GDP Comparing GDP

Introduction to Business © Thomson South-Western Chapter 2 Slide 5 Comparison of GDP in Selected Countries

Introduction to Business © Thomson South-Western Chapter 2 Slide 6 >> C H E C K P O I N T What types of economic activities are not included in GDP?

Introduction to Business © Thomson South-Western Chapter 2 Slide 7 LABOR ACTIVITIES Employment Productivity

Introduction to Business © Thomson South-Western Chapter 2 Slide 8 >> C H E C K P O I N T What are ways to increase productivity?

Introduction to Business © Thomson South-Western Chapter 2 Slide 9 CONSUMER SPENDING Personal income Retail sales

Introduction to Business © Thomson South-Western Chapter 2 Slide 10 >> C H E C K P O I N T What are the main sources of personal income?

Introduction to Business © Thomson South-Western Chapter 2 Slide 11 LESSON 2-2 LESSON 2-2 Economic Conditions Change Goals Describe the four phases of the business cycle. Explain causes of inflation and deflation. Identify the importance of interest rates.

Introduction to Business © Thomson South-Western Chapter 2 Slide 12 Key Terms business cycle prosperity recession depression recovery inflation price index deflation

Introduction to Business © Thomson South-Western Chapter 2 Slide 13 THE BUSINESS CYCLE Prosperity Recession Depression Recovery

Introduction to Business © Thomson South-Western Chapter 2 Slide 14 >> C H E C K P O I N T What are the four phases of the business cycle?

Introduction to Business © Thomson South-Western Chapter 2 Slide 15 CONSUMER PRICES Inflation Causes of inflation Measuring inflation Deflation

Introduction to Business © Thomson South-Western Chapter 2 Slide 16 >> C H E C K P O I N T What are the main causes of inflation?

Introduction to Business © Thomson South-Western Chapter 2 Slide 17 INTEREST RATES Types of interest rates Changing interest rates

Introduction to Business © Thomson South-Western Chapter 2 Slide 18 >> C H E C K P O I N T How do interest rates affect business activities in our economy?

Introduction to Business © Thomson South-Western Chapter 2 Slide 19 LESSON 2-3 LESSON 2-3 Other Measures of Business Activity Goals Discuss investment activities that promote economic growth. Explain borrowing activities by government, business, and consumers. Describe future concerns of economic growth.

Introduction to Business © Thomson South-Western Chapter 2 Slide 20 Key Terms capital project stock bond budget surplus budget deficit national debt

Introduction to Business © Thomson South-Western Chapter 2 Slide 21 INVESTMENT ACTIVITIES Personal savings The stock market The bond market

Introduction to Business © Thomson South-Western Chapter 2 Slide 22 >> C H E C K P O I N T Name some examples of capital projects.

Introduction to Business © Thomson South-Western Chapter 2 Slide 23 BORROWING Government debt Business debt Consumer debt

Introduction to Business © Thomson South-Western Chapter 2 Slide 24 >> C H E C K P O I N T What is the cause of a budget deficit?

Introduction to Business © Thomson South-Western Chapter 2 Slide 25 FUTURE ECONOMIC CHALLENGES Limited access to health care Need for proper housing for many people Traffic and crime Unemployment

Introduction to Business © Thomson South-Western Chapter 2 Slide 26 >> C H E C K P O I N T What are future economic concerns for a country’s economy?