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)

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

How is our economy doing? Some Statistical Measurements: This year employment increased by 1,800,000 jobs as of Sept but U.S. unemployment rate is around 9.1% (Sept. 2011). MI unemployment rate 11.1% Consumer spending has increased by 11% from one year ago (Oct. 17, 2011). Economic growth (GDP) increased 2.5%. (Oct. 23, 2011) What do these statistics reveal about our economy? Do you expect that production will grow, remain the unchanged, or decline in the next year?

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

But how is the economy really doing? Total unemployment 17.5%

Continued… Hourly earnings the same for 50 years

Continued… Economists would agree that income equality is a good thing.

Continued… Think of this like pieces of pizza

Continued… Where does your family fit in here?

Continued… Does the “American Dream” still exist?

No wonder people are angry