1. Introduction to Business & Marketing
Economic Indicators
Introduction to Business & Marketing

2. Task 45
Identify the measures / indicators of economic activity.

3. How do you measure up? Student performance is measured by: GPA SAT
Class rank

4. How do you measure up? Baseball performance is measured by:
Batting average
Strikeouts
ERA
Home runs
RBIs

5. Economic Indicators
Economic indicators are figures used to measure a country’s economic performance
We measure things like:
how much a country produces
whether a country’s economy is growing
how a country’s economy compares to others
* There are many indicators. We will study GDP, inflation, and unemployment.

6. Gross Domestic Product
GDP is the total value of the goods & services produced in a country in a given year
Sum of all goods & services sold by U.S. producers (businesses)
We sell to individual consumers, other businesses, government and other countries
We sell to: individual consumers, other businesses, government, and other countries.

7. What GDP Tells Us
Changes in GDP show whether the economy is growing or slowing
Commonly used to gauge a country’s standard of living

8. Measuring GDP – Fun facts
One of the most important indicators of economy’s status!
U.S. has a very high GDP – $18.56 trillion (#1)
Examples:
China: $11.39 trillion (#2)
Canada: $1.532 trillion (#10)
North Korea: $28.5 billion (#125)

9. Inflation
Inflation is a general increase in the price of goods & services
Consumer buying power decreases because it costs more for something today than it did yesterday

10. What Inflation Tells Us
Indicates that the cost of living is getting more expensive
Most people usually get a 2 - 3% pay raise each year to offset an increase in the cost of living
Most people usually get a 2-3% pay raise each year to offset an increase in the cost of living

11. What causes inflation? Supply < Demand
War scarce resources are transferred to the war effort, less for consumers to buy
Price of imports increases in cost of raw materials, production, expenses, salaries, etc.
Too much money in circulation too much spending
War – scarce resources are transferred to the war effort, which means there is even less for consumers to buy
Price of Imports – increases in cost of raw materials, production expenses, salaries, etc.
Circulation – too much spending

12. Unemployment Rate
Unemployment measures the number of people who are able & willing but cannot find work
Shows whether the economy is picking up or slowing down
US: 4.3% = 6.8 million people (Sept. 2017)

13. What Unemployment Tells Us
The unemployment rates shows whether the economy is picking up or slowing down
It is a lagging indicator (changes after economy has already begun to follow a particular trend)

14. Why does Northern Virginia experience smaller changes to the employment rate than other parts of the country?
THINK ABOUT IT

15. Closing Task
Describe the relationship between the stages of the business cycle and economic indicators.

16. Mon. October 17, 2016
Objectives (45) Identify the measures / indicators of economic activity.
Reminders
PSAT Day
Wednesday 10.19
Econ. Unit Test
Next Tuesday 10.25
NEXT CLASS
Wednesday, October 19th PSAT Day // 8 – 5 – 6 – 7
Workplace Readiness Skills Short Lesson for a Short Class Period!
Unit Review  Fri. October 21st
CLOSURE
Describe the relationship between the stages of the business cycle and the economic indicators.