1. Starter: Write a definition of the word recession
“A period of general economic decline; typically defined as a decline in GDP for two or more consecutive quarters.”

2. MOST will be able to explain how GDP is calculated
Title and LO: How are businesses organised?
Learning Objectives
All will be able to define what the term GDP means and identify the current level of GDP in the UK
MOST will be able to explain how GDP is calculated
SOME will be able to discuss how a high GDP is likely to impact a business.
Working towards: P5 “describe the influence of two contrasting economic environments on business activities within a selected
Organisation”

3. File organisation
If you have a piece of paper out of a plastic wallet, you are doing it wrong
Coursework – each Task to have a different plastic wallet Notes- each task to have a different plastic wallet

4. Can we remember what the different stages of the Business cycle were?
GDP
Boom
Recession
Peak
Trough
Time

5. So what is a recession?:
“A recession occurs when the level of gross domestic product declines over two successive quarters causing a contraction in the total volume of production in the economy.”
“A period of general economic decline; typically defined as a decline in GDP for two or more consecutive quarters.”

6. So what is a recession?:

7. Gross domestic product
So what is a GDP?:
Gross domestic product
“A measure of a country's economic activity, namely of all the services and goods produced in a year “

8. So what is a GDP?: GDP can be measured in three ways:
• Output measure: This is the value of the goods and services produced by all sectors of the economy; agriculture, manufacturing, energy, construction, the service sector and government
• Expenditure measure: This is the value of the goods and services purchased by households and by government, investment in machinery and buildings. It also includes the value of exports minus imports
• Income measure: The value of the income generated mostly in terms of profits and wages.
In theory all three approaches should produce the same number.
In the UK the Office for National Statistics (ONS) publishes one single measure of GDP which, apart from the first estimate, is calculated using all three ways of measuring.

9. Research Task:
1) What is the UK’s current level of GDP? Use to find out.
2) Which countries do you think have a higher GDP?
a) Find out which countries have a higher GDP than the UK.
b) Is there any country that surprises you? Why does this surprise you?

10. List by the World Bank (2009)
Research Task:
Rank
Country
GDP (PPP) $M —
 World 1
 United States
16.8 trillion
  Eurozone
20.5 2
 People's Republic of China
9.24 3
 Japan
5.1 4
 India
2.0 5
 Germany
3.6 6
 Russia
2.1 7
 United Kingdom
2.7 8
 France
2.8 9
 Brazil
2.2 10
 Italy
List by the World Bank (2009)

11. GDP TRACKER

12. Tesco’s, GDP and the recession:
2008
2010
2012
Tesco’s hit by the recession:
Tesco’s recovery: