Taking a look at the BIGGER picture TOPICS COVERED GDP CPI Inflation Stagflation Aggregate supply Aggregate demand Calculations for economic growth inflation and unemployment Structural cyclical and frictional unemployment ID: 508565
Download Presentation The PPT/PDF document "MACROECONOMICS" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
MACROECONOMICS
Taking a look at the “BIGGER” picture.Slide2
TOPICS COVERED:
GDPCPIInflationStagflation
Aggregate supply
Aggregate demand
Calculations for economic growth, inflation, and unemployment
Structural, cyclical, and frictional unemployment
Stages of the business cycle: peak trough contraction recovery expansion recession and depression
NATIONAL DEBT AND GOVERNTMENT DEFICITSlide3
GDP & Economic Growth
What is GDP?GDP is the total number of goods produced in a country, annually.
What is Economic Growth?
Economic growth
is the increase in the market value of the goods and services produced by an economy over time.Slide4
Inflation & Stagflation
What is InflationInflation is the increase in price over time specifically, annually/ yearly.
What is stagflation?
Stagflation
is persistent
high inflation combined with high unemployment and stagnant demand in a country's economy.Slide5
Unemployment
What is unemployment?Unemployment occurs when a person who is actively searching for employment is unable to find work. Slide6
Types of Unemployment
Structural Is when a new machine or technology has a better job advantage over a human being.Cyclical
This type of unemployment occurs when there is an economic shut down and persons are being laid off of their jobs in return.
Frictional
Is when the person has a taste for another job or circumstances force them to resign.
Seasonal
When the weather or time of year causes unemploymentSlide7
How do you calculate all of this ?
Calculating GDP………C+ I + G + (E-I) = GDPC - consumers
I - Business Investments
G - Government Spending
E – Exports
I – Imports Slide8
…………….continued
Calculating CPI………This years price_________________= Consumer Price Index
Last years priceSlide9
………………continued
Calculating Unemployment Rate……..Unemployed_______________* 100 = U.R
Total labor forceSlide10
Aggregate supply & demand
Aggregate Supply? What is that?Aggregate supply is ALLLLLLLLLL that is supplied!
How about demand?
Aggregate demand
is ALLLLLLLLLL that is demanded!Slide11
The Business CycleSlide12
Break it down…….
The Business Cycle is a resemblance of process within an economy.Peak – the somewhat restoration of an economy.Contraction -
A phase of the business cycle in which the economy as a whole is in decline.
Trough - is
a low turning point or a local minimum of a business
cycle
Recovery - a period
of increasing business activity signaling the end of a recession
.
Expansion -
The phase of the business cycle when the economy moves from a trough to a peak. It is a period when business activity surges and gross domestic product expands until it reaches a peak
.
Recession -
is when GDP growth is negative for two consecutive quarters or more
.
Depression -
A recession is briefly defined as a period of declining economic activity spread across the economy Slide13
National Debt & Government Deficit Slide14
National Debt is the total amount of money that a country's government has borrowed.
Government Deficit is an excess of expenditure or liabilities over income or assets in a given period