Business Cycles, Inflation, Recession and Depression.

Slides:

Advertisements

Similar presentations

Who wants to be a Millionaire? PBM Test 2 Review.

Advertisements

3.03Explain economic measurements and the business (economic) cycle.

Economic Measurements How GDP, GDP per capita, and labor productivity measure economic performance.

Is the economy getting better or worse?.  Microeconomics: The study of personal, or small finances.  Individuals, families or businesses  Macroeconomics:

Alomar_111_81 Economic Growth and Instability. Alomar_111_82 Economic Growth Economic growth can be define as: An increase in real GDP over some time.

1 Agribusiness Library Lesson : Macroeconomics.

Chapter 2 Economic Activity.

Chapter 3 Economic Activity in a Changing World pp

 Business Cycle National Debt Unit 7 Decision, Decisions.

Unit A Business in a Changing World Section 1.04 Economic Indicators and the Business Cycle.

Objective Identify the phases of the business cycle and the economic indicators used to measure economic activities and trends. Assess how current.

Economic Activity in a Changing World

6.02 Understand economic indicators to recognize economic trends and conditions E Determine the impact of business cycles on business activities.

Economic Measurements Chapter 4

Chapter 2 Economic Activity Roblee. Gross Domestic Product (GDP) Economic growth refers to steady increase in production of goods and services in economic.

MANAGING THE ECONOMY Economic Growth occurs when a country’s output exceeds its population growth. As a result, more goods and services are available.

Chapter 3 political and economic analysis Section 3.1

The Government & The Economy

1.02 – Analyze economic indicators and how they affect the business cycle.

Business Cycles, Inflation, Recession and Depression.

UNDERSTANDING THE ECONOMY Lesson 3-2. Understanding the Economy Objectives List the goals of a healthy economy Explain how an economy is measured Analyze.

Chapter 12 Economic Indicators and Measurements. GDP and Other Indicators  Gross Domestic Product (GDP): is the market value of all final goods and service.

LESSON 1.1 MARKET ECONOMIES

Chapter 13 Measuring the Economy’s Performance  Section 1National Income Accounting  Section 2Correcting Statistics for Inflation  Section 3Aggregate.

Economic Activity in a Changing World Chapter 3 pp Mr. Manning.

2-1Measuring Economic Activity 2-2Economic Conditions Change 2-3Other Measure of Business Activity.

Business Cycle and Economic Indicators

Choose a category. You will be given the answer. You must give the correct question. Click to begin.

Business Cycle Is the economy getting better or worse?

Economics 7b The Business Cycle. The Business Cycle: The performance of the American economy changes over time. This is called the business cycle.

The Business Cycle Measuring the Economy. Business Cycle  Business Cycle - Economic pattern in which an economy goes through periods of prosperity and.

Economic Conditions Change

3.03Explain economic measurements and the business (economic) cycle.

1 Chapter Goals of a successful economy 1. Increase productivity 2. Decrease unemployment 3. Maintain stable prices Sports, Entertainment and.

Intro Ch. 2 Economic Activity. Ch. 2-1 Measuring Economic Activity GDP- Gross Domestic Product- The total dollar value of all goods and services produced.

 Bond  Budget deficit  Budget surplus  Business cycle  Capital project  Deflation  Depression  Gross domestic product  Retail sales  stock 

Chapter 3 Key Terms. Gross Domestic Product (GDP) The total value of the goods and services produced in a country in a given year.

Section 4.2 Understanding the Economy.  The goals of an economy  The various measurements used to analyze an economy  The four phases of the business.

Between the years of 1991 and 2011, the nominal GDP in America increased from $5.9 trillion to $15 trillion. What conclusions can we draw about America’s.

Economics Analysis of the choices people and governments make in allocating scarce resources Microeconomics Study of small economic units, such as individual.

Business Cycle Essential Questions: Which indicators should members of the government look at when making economic policies? Why? How do we know how.

Economics Measuring the Economy. Gross Domestic Product Gross Domestic Product is a measure of the size of the economy. It is the total value, in dollars,

Contraction TroughExpansion Peak The business cycle is a period of macroeconomic expansion followed by a period of contraction. During the expansion phase,

The Government & The Economy. Learning Objectives To understand the Economic Objectives of Governments.

Back to Table of Contents pp Chapter 3 Economic Activity in a Changing World.

Intro Chapter 4 Economic Measurements. Measuring Economic Growth Economic Growth refers to a steady increase in production of goods and services. Economic.

Measuring the Economy. Vocabulary Gross Domestic Product (GDP) GDP per Capita Base Year Business Cycle Prosperity Recession Depression Recovery Inflation.

Chapter 2 Economic Activity Lessons:  Economic Activity  Economic Conditions  Investing & Borrowing EQ: How do we measure the state of the economy?

Business Cycle. The economy does not grow at a constant rate, instead it goes through alternating periods of growth and decline.

Understanding the Economy Ch. 3 Section 3.2. What is a Healthy Economy? 3 Primary Goals: Increase productivity Decrease unemployment Maintain stable prices.

Essential Standard 1.00 Understand the role of business in the global economy. 1.

Objective 1.02 Understand economic conditions 1 Understand the role of business in the global economy.

NEXT WEEK: Analyzing demographic and economic data of first, second and third world countries Today: Gross Domestic Product and Population Growth (Chapter.

Introduction to Business Mrs. A. Measuring Economic Activity Economic indicators Economic indicators – important data or statistics that measure economic.

Essential Standard 1.00 Understand the role of business in the global economy. 1.

Introduction to Business Chapter 3 Measuring Economic Performance.

3.03Explain economic measurements and the business (economic) cycle.

Chapter 4 ECONOMICS MEASUREMENTS. Goals  EXPLAIN how Gross Domestic Product (GDP), GDP per capita, and labor productivity are used as measurements of.

8.3 Business Cycle Identify phases of the business cycle and the economic indicators used to measure economic activities and trends.

Understanding the United States Business System

Business Cycle Essential Questions: Which indicators should members of the government look at when making economic policies? Why? How do we know how.

Business Cycle Essential Questions: Which indicators should members of the government look at when making economic policies? Why? How do we know how.

The periodic and cyclical ups and downs of the economy

Economic Vocabulary Hubbard 2005.

ECONOMIC MEASUREMENTS Unit 2, Part 2

Economic Measurements

HEALTHY ECONOMIES Discuss three measurements of an economy's health

Measuring economies: GDP & fiscal policy

Chapter 2 Test Review Test is Thursday.

Chapter 2 Test Review Test is Thursday.

Presentation transcript:

Business Cycles, Inflation, Recession and Depression

 The increase in the amount of goods and services in a country  It is measured every year  Gross National Product or GNP : Total dollar value of all goods and services is added up  This flow of money is necessary for a healthy economy

 It can grow if there is: ◦ A large supply of natural resources ◦ A steady growth in population ◦ A free enterprise system where people can find jobs and succeed in their work

 It is irregular changes in the level of total output measured by real GDP  GDP (Gross Domestic Product): the total dollar value of all FINAL goods and services produced in a year  There are fluctuations in the economy: ups and downs in the economy (unemployment, inflation)

 1 st - Prosperity: most people have jobs, spending is high, businesses grow  2 nd - Recession: gradual slowdown due to less spending and lack of jobs  3 rd - Depression: if recession continues and people lost jobs. Ex: Great Depression  4 th - Recovery: jobs become available, people spend, business improves  5 th - Inflation: prices rise quickly, but incomes do not rise as fast

 Inflation: causes prices to rise to a point at which people cannot afford to buy, or may delay buying certain products  Prices of items began to rise faster than your income  Is essentially a devaluing of a nation’s currency

 Merchants can’t sell their goods  1. Consumers can’t buy  2. Sales and profits decline  3. Production declines, layoffs occur and some businesses have to close  4. Interest rates rise (go up with everything else)