1. Goals of the
U.S. Economy
(notes)

2. WARM-UP
Describe a situation where a person’s selfish choice can benefit other people as well.

3. 1. Price Stability
Inflation: is the gradual increase of prices over time
Let’s take a look at an example of inflation:
How much was/is 1 adult movie ticket in:
1997? __________
2002? __________
2007? __________

4. You Can’t Fight Inflation…
Prices will continue to ALWAYS INCREASE
However, the U.S. wants prices to increase slowly from one year to the next.
Target Inflation Rate is 3-4%!

5. Would you and your friends still decide to go watch a movie on a Friday night for $20 a ticket?
Would you and your friends still decide to go watch a movie on a Friday night if the price of a ticket increased to $10.25?

6. If prices increase too rapidly, consumers will not want to spend money!
But if prices increase really slowly, it’s almost unnoticed, and consumer spending remains stable from year to year!

7. Full Employment/ Low Unemployment
The U.S. wants the unemployment rate to be low to maximize productivity
You are considered to be unemployed if:
You are actively looking for a job
And you are 16 years or older
Target Unemployment Rate is 5% or less.

8. 3. Economic Growth Gross National Product
This is one way to measure economic growth from year to year.
Essentially, the U.S. wants the economy to grow every year
Target GNP Growth is 3-4%

9. REVIEW The 3 U.S. Macro Goals Are:
Low Inflation=Stable Prices
Low Unemployment Rate=Full Employment
GNP Growth=Economic Growth

10. Review Q’s: (write out the question and then answer it in your notes)
If the price of a bicycle was $100 last year, what is the highest price it can be this year to hit the target inflation rate?
My name is Sam. I am 19 years old. I really want a job. Is Sam considered to be unemployed. Why or why not???
Every year, the U.S. economy wants the nation to grow at a rate of ___-___%.

11. H.W.-Designing A Flyer
Imagine that you are a candidate running for office. You recognize the importance of keeping the economy stable so you promise that it is one of your main goals to adhere to the macro goals of the U.S. economy.
Design a Flyer that Illustrates the three macro goals and shows that you mean business.

12. Your Flyer Should Have:
Title: U.S. Macro Goals
Slogan Promising Economic Prosperity
Three Illustrations that convey each economic goal of the U.S.:
Low Inflation
Low Unemployment
GNP Growth
The Target %’s for each goal
Inflation
Unemployment
(Flyer needs to be colored!!!)