Chapter 12 GDP and Growth

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Chapter 12 GDP and Growth

• Section 1 Gross Domestic Product
• Section 2 Business Cycles
• Section 3 economic Growth

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Section 1 Gross Domestic Product

• Nation income accounting
• A system that collects macroeconomic statistics
  on production, income, investment, and savings
• Gross Domestic Product
• The dollar value of all final goods and services
  produced within a countrys boarders in a given
  year

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Section 1 GDPtypes of goods

• Intermediate goods
• Goods used in production of final goods
• Durable goods
• Goods that last for a relatively long time such
  as refrigerators, cars, and DVD players
• Nondurable goods
• Goods that last a short period of time, such as
  food light bulbs, and sneakers

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Different GDPs

• Nominal GDP
• GDP measured in current prices
• Real GDP
• GDP expressed in constant, or unchanging, prices

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Not gdp..

• Gross National Product
• The annual income earned by U.S. owned firms and
  U.S. citizens
• Depreciation
• The loss of capital equipment that results form
  normal wear and tear

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How we add this up

• GDP income earned outside the U.S. by U.S.
  firms and citizens income earned by foreign
  firms and foreign citizens located in the U.S.
  GNP
• GNP depreciation of capital equipment Net
  Nation Product
• Net Nation Product excise taxes National
  income

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Supply and Demand to the
extreme

• Aggregate supply
• The total amount of goods and services in the
  economy available at all possible price levels
• Aggregate demand
• The amount of goods and services in the economy
  that will be purchased at all possible price
  levels

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Section 2 Business Cycles

• Business cycle
• A period of macroeconomic expansion followed by a
  period of contraction

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Business cycles

• Expansion
• a period of economical growth as measured by a
  rise in real GDP
• Peak, contraction, trough, expansion
• waves

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ions

• Recession
• A prolonged economic contraction
• Depression
• A recession that is especially long and severe
• Stagflation
• A decline in real GDP combined with a rise in
  price level

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Government influence over this cycle

• Only a few ways government can help
• Taxes
• Federal Interest Rates
• Government Spending

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Chapter 13 Economic Challenges

• Section 1 Economic Challenges
• Section 2 Inflation
• Section 3 Poverty

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Section 1 Unemployment

• Frictional unemployment
• Seasonal unemployment
• Structural unemployment
• Cyclical unemployment
• Census
• Unemployment rate
• Full employment
• Underemployed
• Discouraged worker

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Section 1 Unemployment

• Frictional unemployment
• Unemployment that occurs when people take time to
  find a job
• Seasonal unemployment
• unemployment that occurs as a result of harvest
  schedules or vacations, or when industries slow
  or shut down for a season
• Structural unemployment
• Unemployment that occurs when workers skills do
  not match the jobs that are available

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Section 1 Unemployment

• Cyclical unemployment
• Unemployment that rises during economic downturns
  and falls when the economy improves
• Census
• Ahh!

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Section 1 Unemployment

• Census
• An official count of the population
• Unemployment rate
• The percentage of the nations labor force that is
  unemployed

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Section 1 Unemployment

• Frictional unemployment
• Seasonal unemployment
• Structural unemployment
• Cyclical unemployment

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Section 2 Inflation

• Inflation
• Purchasing power
• Price index
• Consumer Price Index
• Market basket
• Inflation rate
• Core inflation rate

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Inflation

• Consumer price index
• A measurement that shows how the average price of
  a standard group of goods changes over time

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CPI

• Cereals, coffee, chicken, milk, restaurant meals
• Rent, homeowners costs, fuel oil
• Mens shirts, womens dresses, jewelry
• Airfares, new and used cars, gasoline, auto
  insurance

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Last things

• Eco. 3 more chapters eassssy
• 10-15 min. a day for 10 days
• Geography
• Iraq, Sudan (250,000), Iran, North Korea, China,
  Ozone, Sacagawea, Texas, Alaska, California,
  Panama/Erie/Suez cannel, Mexico, Cuba, Mt.
  Sarabuchie, Kosovo

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• History
• WWI-WWII
• Impearlism the The British way
• 1908 Berlin Conference
• 1947 UN Palestine resolution
• Pearl Harbor

• Texas 1836-1870
• Desert Storm I
• Desert Storm II
• Desert Storm III!?
• Fort Sumter
• Bull Run I
• Fredericksburg/ Chanclerville
• Antetem/ Gettysburg