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Transcript of Introduction to Business © Thomson South-Western ChapterChapter Economic Activity 2-1 2-1Measuring...
Introduction to Business© Thomson South-Western
ChapterChapterChapterChapter
Economic Activity
2-12-1 Measuring Economic Activity
2-22-2 Economic Conditions Change
2-32-3 Other Measures of Business Activity
22
Chapter 2
Slide 2Introduction to Business
© Thomson South-Western
LESSON 2-1LESSON 2-1
Measuring Economic Activity
Goals Define gross domestic product. Describe economic measures of labor. Identify economic indicators for
consumer spending.
Chapter 2
Slide 3Introduction to Business
© Thomson South-Western
Key Terms
Gross Domestic Product (GDP) GDP per capita unemployment rate productivity personal income retail sales
Chapter 2
Slide 4Introduction to Business
© Thomson South-Western
GROSS DOMESTIC PRODUCT (GDP) Components of GDP Comparing GDP
Chapter 2
Slide 5Introduction to Business
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Comparison of GDP in Selected Countries
Chapter 2
Slide 6Introduction to Business
© Thomson South-Western
>> C H E C K P O I N T
What types of economic activities are not included in GDP?
Chapter 2
Slide 7Introduction to Business
© Thomson South-Western
LABOR ACTIVITIES
Employment Productivity
Chapter 2
Slide 8Introduction to Business
© Thomson South-Western
>> C H E C K P O I N T
What are ways to increase productivity?
Chapter 2
Slide 9Introduction to Business
© Thomson South-Western
CONSUMER SPENDING
Personal income Retail sales
Chapter 2
Slide 10Introduction to Business
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>> C H E C K P O I N T
What are the main sources of personal income?
Chapter 2
Slide 11Introduction to Business
© Thomson South-Western
LESSON 2-2LESSON 2-2
Economic Conditions Change
Goals Describe the four phases of the
business cycle. Explain causes of inflation and
deflation. Identify the importance of interest rates.
Chapter 2
Slide 12Introduction to Business
© Thomson South-Western
Key Terms
business cycle prosperity recession depression
recovery inflation price index deflation
Chapter 2
Slide 13Introduction to Business
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THE BUSINESS CYCLE
Prosperity Recession Depression Recovery
Chapter 2
Slide 14Introduction to Business
© Thomson South-Western
>> C H E C K P O I N T
What are the four phases of the business cycle?
Chapter 2
Slide 15Introduction to Business
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CONSUMER PRICES
Inflation Causes of inflation Measuring inflation Deflation
Chapter 2
Slide 16Introduction to Business
© Thomson South-Western
>> C H E C K P O I N T
What are the main causes of inflation?
Chapter 2
Slide 17Introduction to Business
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INTEREST RATES
Types of interest rates Changing interest rates
Chapter 2
Slide 18Introduction to Business
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>> C H E C K P O I N T
How do interest rates affect business activities in our economy?
Chapter 2
Slide 19Introduction to Business
© Thomson South-Western
LESSON 2-3LESSON 2-3
Other Measures of Business Activity
Goals Discuss investment activities that
promote economic growth. Explain borrowing activities by
government, business, and consumers. Describe future concerns of economic
growth.
Chapter 2
Slide 20Introduction to Business
© Thomson South-Western
Key Terms
capital project stock bond budget surplus budget deficit national debt
Chapter 2
Slide 21Introduction to Business
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INVESTMENT ACTIVITIES
Personal savings The stock market The bond market
Chapter 2
Slide 22Introduction to Business
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>> C H E C K P O I N T
Name some examples of capital projects.
Chapter 2
Slide 23Introduction to Business
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BORROWING
Government debt Business debt Consumer debt
Chapter 2
Slide 24Introduction to Business
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>> C H E C K P O I N T
What is the cause of a budget deficit?
Chapter 2
Slide 25Introduction to Business
© Thomson South-Western
FUTURE ECONOMIC CHALLENGES Limited access to health care Need for proper housing for many
people Traffic and crime Unemployment
Chapter 2
Slide 26Introduction to Business
© Thomson South-Western
>> C H E C K P O I N T
What are future economic concerns for a country’s economy?