ECONOMICS

Economy Types There are four types of economy in the United States Agricultural Service Industrial Information

Measuring Economic Activity Economic Indicators: Measure things like production rate, economic growth, and how it compares to other countries Gross Domestic Product Unemployment Rate Rate of Inflation National Debt

Gross Domestic Product (GDP) The total value of the goods and services in a country in country Determined by productivity Calculated by the sum of the following goods and services: Consumer goods and services Business goods and services Government goods and services Goods and services sold to other countries (exports)

Gross Domestic Product (GDP) Effect standard of living which is the amount of goods and services the average citizen can buy

Gross Domestic Product (GDP)

Unemployment Rate Measures the number of the people who are able to work but do not have a job during a given period of time Participation Rate: A measure of the active portion of an economy's labor force. The participation rate refers to the number of people who are either employed or are actively looking for work. Service Industrial Information

Unemployment Rate

Rate of Inflation General increase in the cost of goods and services. the opposite is deflation. The more people are employed The more they spend Demand goes up Producers raise prices To pay higher prices higher wages demanded Wages go up Producers raise prices again to offset labor cost Can spiral out of control and leads to Hyperinflation

Rate of Inflation Deflation is a general decrease of goods and services Countries overproduce Prices are lowered Production is reduced Jobs are lost Wages stagnate or are reduced People have less money Demand continues to drop

Rate of Inflation

National Debt The amount of money a government owes Government earns money through taxes Budget deficit is when a country takes less money than they owe Budget surplus is when the country takes in more money than it owes

National Debt

Questions 1)What are the reasons for unemployment 2)What is the difference between inflation and deflation 3) List the four factors of GDP 4) What is the current GDP rate