CHAPTER 12 & 13 ECONOMIC PERFORMANCE. GROSS DOMESTIC PRODUCT TOTAL DOLLAR VALUE FINAL GOODS AND...

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CHAPTER 12 & 13 ECONOMIC PERFORMANCE

Transcript of CHAPTER 12 & 13 ECONOMIC PERFORMANCE. GROSS DOMESTIC PRODUCT TOTAL DOLLAR VALUE FINAL GOODS AND...

Page 1: CHAPTER 12 & 13 ECONOMIC PERFORMANCE. GROSS DOMESTIC PRODUCT TOTAL DOLLAR VALUE FINAL GOODS AND SERVICES NEW ONLY.

CHAPTER 12 & 13

ECONOMIC PERFORMANCE

Page 2: CHAPTER 12 & 13 ECONOMIC PERFORMANCE. GROSS DOMESTIC PRODUCT TOTAL DOLLAR VALUE FINAL GOODS AND SERVICES NEW ONLY.

GROSS DOMESTIC PRODUCT

•TOTAL DOLLAR VALUE

•FINAL GOODS AND SERVICES

•NEW ONLY

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GDP EXPENDITURE MEASUREMENT

• CONSUMER GOODS AND SERVICES PURCHASED +

• BUSINESS GOODS PURCHASED +

• GOVERNMENT GOODS +• NET EXPORTS

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GDPINCOME

MEASUREMENT

• WAGES +

• INTEREST +

• RENTS +

• BUSINESS PROFIT

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INFLATION

•RISE IN GENERAL PRICE LEVEL

–DEFLATION?

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CAUSES OF INFLATION

• DEMAND-PULL• COST-PUSH• WAGE-PRICE SPIRAL• EXCESSIVE MONETARY GROWTH

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EFFECTS OF INFLATION• PURCHASING POWER DOWN

• SPENDING HABITS • SPECULATION INCREASE

• DISTRIBUTION OF INCOME

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MEASURING INFLATION

• CONSUMER PRICE INDEX–MARKET BASKET

• PRODUCER PRICE INDEX• EMPLOYMENT COST INDEX• INTERNATIONAL PRICE

PROGRAM

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BUSINESS CYCLE

•PEAK/BOOM•CONTRACTION•TROUGH•EXPANSION

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RECESSIONvs.

DEPRESSION

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BUSINESS FLUCTUATIONS

• INVESTMENT• GOVERNMENT ACTIVITY• EXTERNAL FACTORS• PSYCHOLOGICAL FACTORS

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IN THE WORKFORCE

•LABOR FORCE

–OVER 16

–LOOKING FOR JOB

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NOT IN THE WORKFORCE• DISABLED• ILL• HOMEMAKER• RETIREE• DISCOURAGED• UNDEREMPLOYED

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FIGURING UNEMPLOYMENT

UNEMPLOYMENT RATE

____________________

LABOR FORCE PARTICIPATION RATE

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TYPES OF UNEMPLOYMENT

•FRICTIONAL–seasonal

•STRUCTURAL•CYCLICAL

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UNEMPLOYMENT BENEFITS

Who is eligible?

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Poverty Rate

• Income distribution

• Income gap

• Anti-poverty policies– Earned Income Tax Credit– Employment Assistance– Housing Assistance– Welfare Reform


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