1. Standard: b. Define Gross Domestic Product (GDP), economic growth, unemployment, Consumer Price Index (CPI), inflation, stagflation, and aggregate supply and aggregate demand. Essential Question: How is the Consumer Price Index Calculated? Who does it hurt? Who does it help? Warm up: Determine the rate of inflation for the following situations. a. CPI 2000 – 100/ CPI 2002 - 110 b. CPI 2004 – 114/ CPI 2005 – 120

2.  GDP=C+G+I+NX  Total dollar value of all FINAL goods and services produced within a country in a given year  Nominal vs Real GDP

3.  Expansion  Peak  Contraction (Recession/ Depression)  Trough

4.  Shifters of AD  GDP=C+G+I+NX  Shifters of AS  Productivity  Input costs  Change in labor force  Taxes/Regulations  What does Real GDP and Price Levels do?

5.  Types of unemployment  -Cyclical-Business cycle  -Structural-Skills  -Frictional  Labor force=employed+unemployed  Not in the labor force  Unemployment rate=unemployed/labor force

6.  Inflation-general rise in prices  When inflation occurs purchasing power decreases  Demand Pull Inflation  Stagflation/Cost Push Inflation  Hyperinflation  Hurt vs. Helped

7.  CPI  % change formula