1. Introduction to Business and Marketing
Objectives (45) Identify the measures / indicators of economic activity.
Reminders
Econ. Quiz #2
A -Friday 10/7 or B-Tuesday 10/11
Today’s Agenda
QOTD
Economic Indicators PowerPoint & Notes. Inflation WebQuest.
CLOSURE
Describe the relationship between the economic systems and the economic indicators.

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

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

4. How do you measure up? Student performance is measured by:
GPA
SAT
Class Rank
Baseball performance is measured by:
Batting Average
Strikeouts

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.

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
One of the most important indicators of economy’s status!
The U.S. has a very high GDP as compared to other countries.
Examples
China: $13.39 trillion
Canada: $1.518 trillion
North Korea: $40 billion
Using 2013 estimates from the CIA World Factbook website:
* United States #1
* China #3
* Canada #14
* North Korea #106

9. Inflation Rate
Inflation is a general increase in the price of goods & services.
Consumers’ 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

11. What causes inflation? Supply < Demand May result from: War
Price of imports
Too much money in circulation
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

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

14. What Unemployment Tells Us
The unemployment rates shows whether the economy is picking up or slowing down.
It is a lagging indicator.

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

16. Thu. October 15, 2015
Objectives (45) Identify the measures / indicators of economic activity.
Reminders
DECA FLC Trip
THU 10/22
Econ. Unit Test FRI 10/23
Today’s Agenda
BRO Time
Daily Quiz The Business Cycle – 10 questions, 5 minutes, open notes!
Economic Indicators PowerPoint & Notes. Inflation WebQuest.
CLOSURE
Describe the relationship between the stages of the business cycle and the economic indicators.