Measuring the Economy



Unit 4: Measuring Economic Performance

Goals – 9.01, 9.02, 9.04, 9.08, 10.02, 10,03, 10.05

Unit Essential Questions

1) What are the different phases of the business cycle?

2) How do economic indicators help to analyze the health of the economy?

BLOCK CLASS

Day 1:

• Business Cycle, Inflation, & Unemployment (Economics Document)

• Review Business Cycle, Inflation, & Unemployment

Day 2:

• Business Cycle/Economic Indicators Chart

• Economic Indicators Worksheet

• Review Economic Indicators

Day 3:

• Review Economic Indicators

• Business Cycle/Economic Indicators Chart Due

Unit 4 – Measuring Economic Performance:

GDP, Business Cycles, Inflation, Unemployment

NCSCOS – 9.01, 9.02, 9.04, 9.08, 10.02, 10.03, 10.05

Chapter 23, Section (pgs. 638-644)

1. What is the Gross Domestic Product (GDP)? ____________________________________________________________________________________________________________________________________

2. When comparing GDP from one year to another what needs to be removed in order to get a true comparison? ________________________________________

3. What do we call GDP minus inflation? __________________________________

4. What is the business cycle? ___________________________________________

5. Identify the phases of the business cycle on the following diagram:

[pic]

6. If real GDP were increasing where would the economy be on the business cycle? _________________________________________________________________

7. If real GDP was on the decline where would the economy be on the business cycle? ____________________________________________________________

8. What is the lowest point in the business cycle called? ______________________

9. What is the highest point called? _______________________________________

10. What is a recession? ________________________________________________

11. Which usually last longer periods of expansion or recession? ________________

12. What are economic indicators? ________________________________________ __________________________________________________________________

13. Identify the following economic indicators and what they would indicate about the economy if they were going up:

|Economic Indicator |Description |Direction in expanding economy |

|Unemployment Rate | | |

|Delayed Deliveries | | |

|New Durable Goods Orders | | |

|Stock Market | | |

|New Building Permits | | |

14. Identify the following terms concerning the stock market:

a. Bull Market _________________________________________________

b. Bear Market _________________________________________________

c. Stock Indexes ________________________________________________

i. Dow Jones Industrial Average (DJIA) ______________________ ______________________________________________________

ii. Standard & Poor’s 500 (S&P 500) _________________________ ______________________________________________________

d. Stock Exchanges _____________________________________________

i. NYSE ________________________________________________

15. Why do stock prices change? __________________________________________ __________________________________________________________________

16. What is inflation? __________________________________________________

17. How do we measure inflation? Consumer Price Index _____________________ __________________________________________________________________

18. What does inflation do to the purchasing power of the dollar? __________________________________________________________________

19. Who does inflation hurt most? _________________________________________

20. What causes inflation?

a. Cost-Push Inflation ___________________________________________ ____________________________________________________________

b. Demand-Pull Inflation ________________________________________ ____________________________________________________________

21. What should the government do if we notice that inflation is rising too much? __________________________________________________________________

22. What should the government do if the economy is slipping into recession? __________________________________________________________________

23. What tools does the government have to affect changes in the economy?

a. Fiscal policy _________________________________________________ ____________________________________________________________

b. Monetary policy ______________________________________________ ____________________________________________________________

Chapter 24, Section 3 (pgs. 647-649)

24. What does the government do to help individuals who suffer from poverty in the United States?

a. Poverty line = ________________________________________________

b. Identify each of the following welfare programs established to combat poverty in the United States:

i. Food stamps __________________________________________

ii. (WIC) Women Infants and Children ______________________ ______________________________________________________(SSI) Supplemental Security Income

Business Cycle/ Economic Indicators Chart

Objective: Analyze the effect of economic indicators on the business cycle.

Assignment: Each student must draw the business cycle on a sheet of 8.5 x 11 piece of paper. Under each phase you must place which economic indicators belong in each phase. Assume that economists have made the following reports about these leading economic indicators. Where would these indicators be placed on the business cycle?

Put the number of the statement where it should go on the business cycle

Economic Indicators:

1) Stock prices show steady increases over the last six months.

2) Unemployment claims are up 5%.

3) Total inventories have slightly increased.

4) The # of building permits issued in the last six months have drastically increased.

5) Manufacturing labor hours show steady increases.

6) New plants & equipment have increased sharply.

7) Delayed deliveries have drastically reduced.

8) New durable good orders have declined slightly.

9) The number of new businesses formed has sharply increased.

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download