Use the scissors to cut the money. You have the remainder of this song. CALL TO ORDER.
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Transcript of Use the scissors to cut the money. You have the remainder of this song. CALL TO ORDER.
Today’s ObjectiveStudents will be able to identify and describe
how GDP, CPI, Inflation, and Unemployment measure the health of our economy BY
• listening to an audio clip about the 2008 economic collapse,
• completing a graphic organizer, • participating in a simulation (all week) and • calculating the GDPs for various countries.
Listen to the sound clip. How do the occurrences indicate a
recession? Headlines How does this
illustrate a recession?
Dentist Observes A Rise in Cracking Teeth
Urologists See Rise in Vasectomies
Traffic Delays Drop by One-Third
Women Rob Banks and Buy Cashier’s Checks to Pay Their Rent
Porn Sales are Down
Shark Attacks at Their Lowest Point in 5 years
Expansion
Unemployment goes down.
A period of economic growth.
GDP goes up.
CPI goes up (inflation).
• Many people in Baltimore are employed, so they buy new cars.
• General Motors wants to produce more cars, so it gets a loan from Bank of America to hire workers.
• General Motors hires more workers to make more cars.
• These new workers now have jobs, so they spend money on new refrigerators…
ExpansionDuring expansions, money flows well between consumers, businesses, and
banks.
• General Motors goes out of business and all of its workers lose their jobs.
• These unemployed people stop buying coffee and muffins.
• Starbucks tries to get a loan to stay in business.
• Bank of America won’t loan money to Starbucks because it thinks it is going out-of-business and won’t pay them back.
• Starbucks goes out of business and all of its workers lose their jobs.
• These unemployed people stop buying…
RecessionDuring a recession, money does not flow well between consumers, businesses, and
banks.
Unemployment• You must able to work, want to
work, and unable to find a job• Unemployment Rate = Percentage
of people who fit this requirement
Good?Under 5%
Bad?Over 5%
What do you think the current unemployment rate
it?
Bad.9.5%
I’m looking
for work but I can’t find a job!
CPI: Consumer Price Index
It is a basket of goods that we use to measure how prices rise and fall (inflation).
2008 2009
Ketchup $2.19 $2.25
Pencil $.10 $.12
Haircut $12 $13
Consumer Price Index2008 2009
Cheerios $3.79 $3.88Dozen Eggs $2.19 $2.22
Gallon of Milk $3.69 $3.79Gasoline $1.88 $1.74
12-pack of Coke $4.99 $4.99$16.54 $16.62
CPI: .5%A positive CPI means that prices are
going up
The total value of all final goods and services made IN a country during the year.
GDP: Gross Domestic Product
If you bought everything that was for sale in the United States in one year, how much would it cost you?
The answer: $14 trillionThat’s $14,000,000,000,000.00