Gross Domestic Product Total dollar value of goods and services
produced in a country during one year.
Slide 3
Slide 4
GDP Comparisons Rank Country GDP (millions of USD) World
54,347,038 1 United States 13,811,200 Eurozone 12,179,250 a a 2
Japan 4,376,705 3 Germany 3,297,233 4 China (PRC) 3,280,053 5
United Kingdom 2,727,806 6 France 2,562,288 b b 7 Italy
2,107,481
Slide 5
CPI Consumer Price Index The price of a selection of goods and
services purchased by a typical consumer.
Slide 6
Inflation A general rise in the level of prices of goods and
services over a period of time. Change in CPI
Slide 7
Unemployment Rate Percentage of the population without a job
but looking for work. Is a stay at home Mom considered part of the
unemployment rate?
Slide 8
1. Frictional: People who have quit work They didnt like the
job, boss, working conditions and they havent found a new job 2.
Structural: caused by the restructuring of firms or mismatch b/
skills of job seekers and the requirements (location) of available
jobs Example: coal miners in an area where mines are closed 3.
Cyclical: occurs b/c of a recession Most serious type of
unemployment 4. Seasonal: Demand for labor varies over the year
Example: harvesting of crops
Slide 9
Slide 10
Period of economic growth GDP Increases Unemployment generally
decreases Inflation generally increases
Slide 11
Highest level of economic activity GDP stops increasing
Unemployment stops decreases Inflation stops increases and may
start decreasing
Slide 12
Period of economic decline GDP decreases Unemployment increases
Inflation generally decreasing
Slide 13
Lowest level of economic activity GDP stops decreases to lowest
levels Unemployment is at its highest levels Inflation stops
decreasing and may start increasing
Slide 14
Expansion : Rising prices, GDP rises, jobs growth
Expansion
Slide 15
Peak : A period of prosperity, growth stops Expansion Peak
Slide 16
Contraction : Unemployment rises, consumer spending low,
profits low- 6m to a year Inflation Peak Contraction
Slide 17
Trough : Long term major slowdown, unemployment soars, firms
fail. Inflation Peak Recession Trough
Slide 18
Recession: Real GDP must fall for at least 6 months in a row
Depression: Prolonged recession (6-18 months long) ***We attempt to
keep the business cycle STABLE. Periods of extreme growth and
decline are NOT desirable!
Slide 19
Create a poster illustrating each phase of the business cycle.
Each phase should include: Events that might occur Mood of
consumers & businesses Pictures
