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№1 слайд![Indicators of economic](/documents_6/965b7cf697a104322558171a07c4c641/img0.jpg)
Содержание слайда: Indicators of economic efficiency
How do we measure the health of our economy?
№2 слайд![](/documents_6/965b7cf697a104322558171a07c4c641/img1.jpg)
№3 слайд![Gross Domestic Product Gross](/documents_6/965b7cf697a104322558171a07c4c641/img2.jpg)
Содержание слайда: Gross Domestic Product
Gross Domestic Product
market value of all final goods and services produced within a country in a year
Final goods are purchased by the last user and will not be resold or used to produce anything else
№4 слайд![NOT Counted in GDP](/documents_6/965b7cf697a104322558171a07c4c641/img3.jpg)
Содержание слайда: NOT Counted in GDP
Intermediate goods
Resources of any kind
Used goods
Ex: Used cars, purchase of an older home, thrift store clothing, Craigslist, Ebay
Illegal goods/services
Ex: Drugs, theft etc.
Purely financial transactions
Ex: Investment in stocks or savings
Transfer Payments
Ex: Social Security, Food Stamps
Barter
Ex: Babysitting for yardwork
№5 слайд![Components of GDP C consumer](/documents_6/965b7cf697a104322558171a07c4c641/img4.jpg)
Содержание слайда: 4 Components of GDP
C: consumer spending
Daily spending on goods and services
I: business investment spending
Machinery, factories, equipment etc.
№6 слайд![G government spending G](/documents_6/965b7cf697a104322558171a07c4c641/img5.jpg)
Содержание слайда: G: government spending
G: government spending
Spending by all levels of government - military, school, highways, supplies etc.
NX: net export spending
Purchases of U.S. goods and services by foreign buyers (exports) minus purchases of foreign goods and services by U.S. consumers (imports)
№7 слайд![GDP C I G NX Example In ,](/documents_6/965b7cf697a104322558171a07c4c641/img6.jpg)
Содержание слайда: GDP= C+I+G+NX
Example:
In 2000, estimates in trillions of dollars
GPP = C + I + G + NX
$10.04 = $6.81 + $1.87 + $1.75 + ($1.13-$1.52)
№8 слайд![Unemployment Rate](/documents_6/965b7cf697a104322558171a07c4c641/img7.jpg)
Содержание слайда: Unemployment Rate
Unemployment Rate
Percentage of labor force who is not working
Labor Force: everyone 16 – 65 who is working or actively looking for work
3 types of unemployment
№9 слайд![Frictional People are out of](/documents_6/965b7cf697a104322558171a07c4c641/img8.jpg)
Содержание слайда: Frictional
People are out of work temporarily
Seasonal work
Changing jobs
Looking for 1st job
This is acceptable unemployment
№10 слайд![Structural Unemployment](/documents_6/965b7cf697a104322558171a07c4c641/img9.jpg)
Содержание слайда: Structural
Unemployment because your job skills are no longer needed
Ex. Technology replaces workers so people are laid off
People can go back to school and learn new skills
№11 слайд![Cyclical People are](/documents_6/965b7cf697a104322558171a07c4c641/img10.jpg)
Содержание слайда: Cyclical
People are unemployed due to fluctuations in the business cycle
As the economy declines, people lose their jobs
Worst kind of unemployment, can not easily fix. Economy must recover first.
№12 слайд![Consumer Price Index Consumer](/documents_6/965b7cf697a104322558171a07c4c641/img11.jpg)
Содержание слайда: Consumer Price Index
Consumer Price Index
Index of all goods and services produced in a country
Measured by a market “basket” of all goods and services that are commonly bought year after year by the typical urban household
№13 слайд![Effects of Changing CPI](/documents_6/965b7cf697a104322558171a07c4c641/img12.jpg)
Содержание слайда: Effects of Changing CPI
Inflation
Rising price levels
purchasing power of the dollar falls
Dollar buys less
Deflation
Falling price levels
purchasing power of the dollar rises
Dollar buys more
№14 слайд![](/documents_6/965b7cf697a104322558171a07c4c641/img13.jpg)
№15 слайд![Relationship between GDP,](/documents_6/965b7cf697a104322558171a07c4c641/img14.jpg)
Содержание слайда: Relationship between GDP, Unemployment and CPI
As GDP rises, unemployment rates fall and prices begin to rise
As GDP falls, unemployment rises and prices begin to decline
№16 слайд![Stages of the Business Cycle](/documents_6/965b7cf697a104322558171a07c4c641/img15.jpg)
Содержание слайда: 4 Stages of the Business Cycle
№17 слайд![Business Cycle](/documents_6/965b7cf697a104322558171a07c4c641/img16.jpg)
Содержание слайда: Business Cycle
№18 слайд![Business Cycle](/documents_6/965b7cf697a104322558171a07c4c641/img17.jpg)
Содержание слайда: Business Cycle
№19 слайд![Business Cycle](/documents_6/965b7cf697a104322558171a07c4c641/img18.jpg)
Содержание слайда: Business Cycle
№20 слайд![Business Cycle stages](/documents_6/965b7cf697a104322558171a07c4c641/img19.jpg)
Содержание слайда: Business Cycle – 4 stages
№21 слайд![Aggregate means total Total](/documents_6/965b7cf697a104322558171a07c4c641/img20.jpg)
Содержание слайда: Aggregate means “total”
Total demand for ALL FINAL goods and services in the economy
from all people in the economy
for all prices levels
№22 слайд![Components Aggregate demand](/documents_6/965b7cf697a104322558171a07c4c641/img21.jpg)
Содержание слайда: Components
Aggregate demand consists of:
consumer spending (C)
investment spending (I)
government spending (G)
net export spending (NX).
If any component increases, GDP increases, AD curve shifts right.
If any component decreases, GDP decreases, AD curve shifts left
№23 слайд![THE CURVE High price level](/documents_6/965b7cf697a104322558171a07c4c641/img22.jpg)
Содержание слайда: THE CURVE
High price level leads to lower quantity of aggregate demand
№24 слайд![Aggregate Supply Total](/documents_6/965b7cf697a104322558171a07c4c641/img23.jpg)
Содержание слайда: Aggregate Supply
Total production of ALL FINAL goods and services in the economy
from all poducers in the economy
for all prices levels