brainstorm! how do you think economists measure the health ... · ms. ellman macroeconomics...
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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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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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episode476thereturnoftheindicator.webloc
Podcast Analysis!
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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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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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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
http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=10420
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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://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=10420
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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http://allthatisinteresting.com/pollutioninchinaphotographs#25
http://all-that-is-interesting.com/pollution-in-china-photographs#25
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http://allthatisinteresting.com/pollutioninchinaphotographs#25
http://all-that-is-interesting.com/pollution-in-china-photographs#25
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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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Let’s draw the Business Cycle!
What causes the rising and falling in the business cycle?
1.
2.
3.
4.
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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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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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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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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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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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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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Economic Contraction:
Economic Expansion:
GDP:
Unemployment:
Inflation:
GDP:
Unemployment:
Inflation:
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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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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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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/
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Attachments
episode476thereturnoftheindicator.webloc
[InternetShortcut]URL=http://www.npr.org/blogs/money/2013/07/30/207051333/episode-476-the-return-of-the-indicator
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