1. Do Now In your notebooks: How have you contributed to Gross Domestic Product (GDP) in the last month? Think about the four components of GDP discussed last class

2. Inflation Activity Use the following source to complete your graph: http://data.bls.gov/cgi-bin/surveymost?ap Pairs will research the price of a chosen item over the past 20 years Pairs will then create a line graph via PowerPoint illustrating the increase/decrease in price over that time frame A second slide will be included, explaining the reason for the largest increase/decrease in price over that 20-year time span Reasons could include inflation/deflation OR reasons other than the economic indicator

3. Short Reading 3 groups Read your respective article with your group and write down main points about the article that properly summarizes that article It is your responsibility to educate your classmates on your respective article, so take the necessary time to review! Ask if you have questions about meaning within articles Gallery Walk: Tape your poster to the front board and take notes on the other posters with your group Be ready to discuss!

4. Economic Indicators What do these economic figures indicate about the economy? What are they telling us? What do they identify?

5. The Business Cycle Business cycle: the rise and fall of economic activity over time Can happen due to results of wars, foreign competition, or changes in technology Every slump followed by a new wave of productivity in the past in the United States 1930s, ‘50s, & ‘70s all periods of low economic activity followed by periods of high productivity

6. Contagion Effect Ups and downs of one economy can impact other economies Known as the Contagion Effect In a global economy, several countries are interdependent Several economies are trading goods and services with one another, so one country’s economy can affect its other trading partners Think, Pair, Share: What countries do you think would be impacted by the struggles of the United States? Why?

7. 4 Periods of the Business Cycle 1. PROSPERITY 2. RECESSION 3. DEPRESSION 4. RECOVERY

8. Prosperity Peak of economic activity Low unemployment Production high New businesses open Wages higher, leading to greater demand for goods and services both domestic and foreign 1990s: low inflation and internet created opportunities

9. Recession Economic activity slows down Spending decreases Demand decreases Businesses produce less, so they need fewer workers Unemployment rate increases, meaning people have less to spend GDP declines Can impact one industry, related industries, or an entire economy Recession in auto industry can lead to recession in industries that make parts for cars, like steel and rubber Known as a ripple effect

10. Depression A recession that affects the entire economy and lasts for several years High unemployment Low productivity Usually spreads to related countries Severe shortages Great Depression: October 29, 1929 – “Black Tuesday” Stocks crash GDP falls almost 50% from 1929-1933 Unemployment increases 800% and wages plunge 25% unemployment rate

11. Recovery Rise in business activity after recession or depression Production increases People go back to work Spending increases New demand stimulates production GDP grows Leads to prosperity, where new businesses open Breeds innovation, leading to competitive advantages in the form of lower costs or greater sales As a result, profits increase, businesses grow, and economic activity soars Recovery can take a long time or it can happen quickly 1939 US only beginning to recover from the Great Depression when WWII began US recovered much faster during the war due to demand for war production

12. Scenarios

13. Sports Streaks and the Business Cycle Groups of three Choose a team Compare winning/losing streaks with peaks and valleys of business cycle discussed in class Answer questions on rubric Use page 40 as guide Use whatever food/materials you feel necessary to display creativity! Presentations next period

14. Exit Slip Which economic indicator do you feel is most representative of the health of the economy? Why this economic indicator in particular?