1. Promoting Growth and Stability

2. Tracking Business Cycles  Macroeconomics examines the major trends for the economy  Macroeconomics is the study of the economic behavior and decision making of small units, such as individuals, families and businesses  Economist measure the economic status by calculating the nations Gross domestic product (GDP)

3. Promoting Economic Strength  One aim of the federal economic policy is to create and provide jobs for everyone who is unable to find work.  Many economists consider an unemployment rate of four to six percent desirable  One major indicator of economic stability is the general price levels

4. Technology and Productivity  American economy maintains a far higher standard of living that most of the world  Improvements in technology allow an economy to produce more output from the same or smaller quantity of inputs or resources  The government has its own research institution that also produces a steady stream of new inventions, such as NASA

5. Vocabulary Terms!  Macroeconomics- the study of behavior and decision making of entire economies.  Microeconomics- study of the economic behavior and decision making of small units.  Business Cycle- period of macroeconomic expansion followed by a period of contraction  Employment- the federal government wants to provide jobs for everyone who is able to work.

6. Vocabulary Cont..  Growth- We want a higher standard of living than that of previous generations.  Economic Citizenship- As a voter your elective choices will help guide government economic policy  Growth- We want a higher standard of living than that of previous generations.  Stability - gives consumers, producers, and investor’s confidence in the economy and in our financial institutions

7. Lets watch this quick video!  http://www.youtube.com/watch?v=rG5J2 i362Rs&feature=related http://www.youtube.com/watch?v=rG5J2 i362Rs&feature=related

8. Quick Quiz 1. What does GDP stand for? 2. Macroeconomics examines the major trends in what? 3. (True/False) One aim of the federal economic policy is to create and provide money 4. (True/False) America has a higher standard of living than the rest of the world? 5. Who created NASA?