BRAINSTORM! How do you think economists measure the health ... · Ms. Ellman Macroeconomics Notebook.notebook 2 November 21, 2014 Economic Indicators: Statistics used by economists

Ms. Ellman Macroeconomics Notebook.notebook

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November 21, 2014

BRAINSTORM!How do you think economists measure the

health of the economy?


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November 21, 2014

Economic Indicators: Statistics used by economists to measure the current health of the economy and to predict future changes.

Some of the most important economic indicators:1. Gross Domestic Product (GDP): How much is produced!2. Stock Market3. Employment/Unemployment4. Inflation (Consumer Price Index)5. Consumer Spending6. Interest Rates

Macroeconomics: the study of the economy at the national level


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November 21, 2014

episode476thereturnoftheindicator.webloc

Podcast Analysis!


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November 21, 2014

Gross Domestic Product (GDP)

What is GDP?

What is the difference between Real GDP and Nominal GDP?

Dollar Value:

Final goods/services:

Intermediate:


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November 21, 2014

Gross Domestic Product (GDP)

What is GDP?

What is the difference between Real GDP and Nominal GDP?

Dollar Value:

Final goods/services:

Intermediate:


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November 21, 2014

What are some of the limitations of GDP as a measure of economic wellbeing? (What does GDP leave out?)

http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=10420



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November 21, 2014

What are some of the limitations of GDP as a measure of economic wellbeing? (What does GDP leave out?)

http://allthatisinteresting.com/pollutioninchinaphotographs#25


http://all-that-is-interesting.com/pollution-in-china-photographs#25http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=10420


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November 21, 2014


http://all-that-is-interesting.com/pollution-in-china-photographs#25


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November 21, 2014


http://all-that-is-interesting.com/pollution-in-china-photographs#25


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November 21, 2014

The Business Cycle

What is the Business Cycle?

Expansion (or economic growth) is an

increase in Real

GDP.

Contraction (or economic slowdown) is a decrease in Real

GDP.

A recession is: a contraction that lasts for more than 6 months.


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November 21, 2014

Let’s draw the Business Cycle!

What causes the rising and falling in the business cycle?

1.

2.

3.

4.


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November 21, 2014

Ms. Ellman Name: __________________________

Unit 4: Macroeconomics

Classwork

The Business Cycle: Analyzing Graphs

Using the graph titled, “Gross Domestic Product 19751999 (in trillions of 1996 dollars),” answer the following questions.

A recession can also technically be defined as a period when real gross domestic product drops for six or more consecutive months.

During which years did we have a recession?

Real GDP increases during a period of economic expansion. During which years did the economy expand?

What was the longest period of economic expansion? What was the shortest period of economic expansion?

Using the graph titled, “Economic Growth Rates, 19591999,” answer the following questions.

Did the U.S. economy always grow in the 1960s?

In what periods did the U.S. economy experience negative economic growth rates?


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November 21, 2014

ECONOMIC INDICATOR: UNEMPLOYMENT

http://www.huffingtonpost.com/2014/08/01/julyjobsreport_n_5639065.html

How can the U.S. creating jobs and the unemployment rate increasing happen at the same time?

Number in survey:

Number reporting at least 1 hour per week of paid employment:

Number not work, but actively seeking work:

Number not working and not seeking work who are students, homemakers, retired, institutionalized, none of the above:


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November 21, 2014

Unemployment Facts:

> People with jobs are employed.

> People who are jobless, looking for a job, and available for work are unemployed.

> The labor force is made up of the employed and the unemployed.

Calculating Unemployment Rate

unemployment rate = (# of unemployed / labor force) x 100%


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November 21, 2014


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November 21, 2014

ECONOMIC INDICATOR: UNEMPLOYMENT

http://www.huffingtonpost.com/2014/08/01/julyjobsreport_n_5639065.html

How can the U.S. creating jobs and the unemployment rate increasing happen at the same time?

Number in survey:

Number reporting at least 1 hour per week of paid employment:

Number not work, but actively seeking work:

Number not working and not seeking work who are students, homemakers, retired, institutionalized, none of the above:


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November 21, 2014

Unemployment Facts:

> People with jobs are employed.

> People who are jobless, looking for a job, and available for work are unemployed.

> The labor force is made up of the employed and the unemployed.

Calculating Unemployment Rate

unemployment rate = (# of unemployed / labor force) x 100%


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November 21, 2014


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November 21, 2014

Focus Question: How is your type of unemployment defined?

Seasonal Frictional Cyclical Structural

Types of Unemployment


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November 21, 2014

Focus Question: How is your type of unemployment defined?

Seasonal Frictional Cyclical Structural

Types of Unemployment


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November 21, 2014


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November 21, 2014

Economic Contraction:

Economic Expansion:

GDP:

Unemployment:

Inflation:

GDP:

Unemployment:

Inflation:


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November 21, 2014

How do YOU measure poverty?

Economic Indicator: Level of Povertyhttp://www.nytimes.com/newsgraphics/2014/01/05/povertymap/

http://www.nytimes.com/newsgraphics/2014/01/05/poverty-map/


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November 21, 2014

Poverty Line: The estimated level of income needed to secure the necessities of life.

Persons in family/household

For families/households with more than 8 persons, add $4,060 for each additional

person.

Poverty guideline

1 $11,670

2 $15,7303 $19,7904 $23,8505 $27,9106 $31,9707 $36,0308 $40,090

Poverty Line: 2014

(48 Continental States)


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November 21, 2014

Focus Question: What are the problems with the poverty line?

NPR Story: "A College Kid, A Single Mom, and The Problem With the Poverty Line"

http://money.cnn.com/calculator/pf/costofliving/

http://money.cnn.com/calculator/pf/cost-of-living/

Attachments

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BRAINSTORM! How do you think economists measure the health ... · Ms. Ellman Macroeconomics Notebook.notebook 2 November 21, 2014 Economic Indicators: Statistics used by economists