Chapter 2 Economic Activity Roblee

Gross Domestic Product (GDP) Economic growth refers to steady increase in production of goods and services in economic system. Gross Domestic Product-tl dollar value of all good and services produced in a country in a year.

Four Components of GDP Consumer spending for food, clothing, housing and other aspects. Business spending for buildings, equipment and inventory items. Government spending to pay employees and to buy supplies and other goods & services. Exports of a country less the imports into the country.

Look at page 34 Figure 2-1 Which country has the highest GDP per capita? (output per person) GDP / Population = GDP per capita What types of activities are not included in GDP?

Labor & Consumer Spending GDP Unemployment rate Productivity Personal Income Retail Sales What are the main sources of personal income?

Business Cycle Recurring ups and downs of GDP. Prosperity Recession Depression Recovery

Inflation Prices are going up Demand > supply C.p.i (compares prices from one year to a base/previous year)

Deflation Prices are going down Occurs in a recession and depression

Poster Categories Economic Resources –Define each Economic Decision Making –Trades off and Opportunity Cost –Steps

Poster Continued Three Economic Questions & Types of Economic Systems –Define U.S. Economic System –Define each Supply & Demand –Define and create chart for reference

Grade for Poster Accuracy of Definition and steps-10pt Photos to help illustrate concept-5 pts Summarize text, not word for word-10 pts Color and neatness-5 pts Counted as a quiz grade total 30 pts

Activity Internet Blogs –Provide comments, news and observations about a topic. –Information must be confirmed. Assignment-search the internet for a blog that relates to the current economic condition of the United States.

Activity Continued Find at least five postings that talk about the current condition of the economy, using what we have talked about in class as a guide. Find one other website or source that backs up what your blog post stated. Summarize each posting and cite the source. Cite the back up source.

Hand In To Me 1. Url for Blog post –Article title #1 –Article title #2 –Article title #3 –Article title #4 –Article title #5 2. Pick your favorite article and summarize briefly in your own words.

…Assignment Continued 3. Find Your Proof –Paste url of resource cite –Who and what was said to verify your data. –In other words what is your proof.