1. C16S1: The Cost of Economic Instability
Main Idea:
Economic instability leads to social as well as economic problems.

2. C16S1: The Cost of Economic Instability
Key Terms:
Stagflation
GDP gap
Misery (discomfort) index

3. C16S1: The Cost of Economic Instability
The Economic Costs
The GDP Gap
Hurts the nation to be producing at inefficient levels

4. C16S1: The Cost of Economic Instability
The Economic Costs
The Misery Index
Helps us understand the standard of living in the US

5. C16S1: The Cost of Economic Instability
The Economic Costs
Uncertainty
If we aren’t secure in our jobs, we shop less
Less shopping means a slower economy with more job loss

6. C16S1: The Cost of Economic Instability
The Social Costs
Wasted Resources
Inefficiency means we are wasting resources that are already scarce and we may need in the future
Political Instability
Voters become dissatisfied and throw out incumbents
New politicians are elected to try and fix the situation
Crime and Family Values
Poor economies have trouble dealing with, and can create, high crime rates