1. Macro #11: Unemployment 1.Which portion of the US GDP is the largest? A.Consumption B. Investment B.C. Govt. Purchases D. Net Exports 2.Which portion of the US GDP is the smallest? A.Consumption B. Investment B.C. Govt. Purchases D. Net Exports

2. 3. A small economic downturn lasting for over 6 months is a A. ExpansionB. Recession D. DepressionD. Peak 4. Which of the following would count as part of the US GDP for this year? A. income generated by a lemonade stand B. An I-phone made in California C. A dinner made at home D. A used stroller sold on Ebay

3. One last question… 5. GDP per capita tells us which of the following? A. The amount each person in a given country produces in a year B. A general idea of a country’s standard of living C. All of the above

4. UN employment Unemployed : over 16, looking for work Not in the labor force: ppl who are neither unemployed or employed –EX: Discouraged workers: ppl who have given up looking for work –EX: Underemployed workers: ppl whose jobs are beneath their skill level or want full time work but can only find part time –EX:

5. Unemployment Rate % of ppl who are unemployed –US: 9% –CA: 12.3% Measure of economic performance

6. Varies w/demographics Men, 16 + –All: 10.5% –White: 9.6% –African American: 18.9% –Asian: 6.6% –Latino: 12.9% Women, 16 + –All: 7.7% –W: 7.5 –AA: 13.2 –A: 7.3 –L: 11.9

7. Why is high unemployment bad for the economy?

8. Good economic sign - Full employment: when unemployment is around 5% –2006-07: 4.6% unemployment

9. Macro # 12: Elkhart, Indiana Unemployment