Welcome to Economics!  Turn your homework into the box  Grab your notebook  Pick up Calculator  Find a seat where you are free from distractions and be seated when the bell rings.  Create a new entry for “GDP/Unemployment”  Clear your desk for the Exam  Turn your homework into the box  Grab your notebook  Pick up Calculator  Find a seat where you are free from distractions and be seated when the bell rings.  Create a new entry for “GDP/Unemployment”  Clear your desk for the Exam

“GDP/Unemployment”  you have 30 min to complete your exam  Class should be silent  When you finish, raise your hand to receive a progress report  you have 30 min to complete your exam  Class should be silent  When you finish, raise your hand to receive a progress report 5 minutes End

Unit 4 Project  Portfolio of daily homework assignments  For each Economic Indicator, you will find a news article that uses the indicator to explain the American economy.  Print out the article  Complete the article analysis paper for a HW grade  At the end of the unit, you will compile everything into a portfolio of new articles.  Portfolio of daily homework assignments  For each Economic Indicator, you will find a news article that uses the indicator to explain the American economy.  Print out the article  Complete the article analysis paper for a HW grade  At the end of the unit, you will compile everything into a portfolio of new articles.

Objective of the day:  I can Explain the conditions necessary to be counted as unemployed in order to analyze the four types of unemployment in real life scenarios.  I can Explain GDP as an economic indicator, distinguish GDP and non-GDP goods and services in order to calculate GDP.  I can Explain the conditions necessary to be counted as unemployed in order to analyze the four types of unemployment in real life scenarios.  I can Explain GDP as an economic indicator, distinguish GDP and non-GDP goods and services in order to calculate GDP.

QOD  H OW DO WE KNOW IF OUR COUNTRY ’ S ECONOMY IS DOING A GOOD JOB AS A WHOLE ?

Economic Indicators  Economic Indicators help us understand the performance of our economy  They are the topic of the newsworthy buzz.  2 huge indicators: Unemployment and GDP  Economic Indicators help us understand the performance of our economy  They are the topic of the newsworthy buzz.  2 huge indicators: Unemployment and GDP

Conditions for Unemployment  To be considered unemployed you must be:  16 years old  not working  actively looking for work  To be considered unemployed you must be:  16 years old  not working  actively looking for work

Frictional Unemployment  Moving places or stages in life A recent graduate looking for a job is an example of FRICTIONAL unemployment

Structural Unemployment  Change in demand or new technology Example: Banktellers who lost jobs after ATMs were invented

Seasonal Unemployment  Change in time of year causes job loss This Mall Santa is going to be out of a job on December 26 th !

Cyclical Unemployment  Downturn in the economy - recession, depression This factory was shut down in 1932 because of the Great Depression

Sorting  A.______________________ Michael Bloomberg, the Santa at Oak Court Mall, loses his job on December 26th  B.______________________ Your 13 year old cousin is looking for a babysitting job after school  C.______________________ A 22-year old is looking for a job in New York after graduating.  D.______________________ A FedEx employee loses his job due to the recession in America  E.______________________ A baker loses his job once a new bread-making machine comes out Seasonal NOT unemployed Frictional Cyclical Structural 1:000:590:580:570:560:550:540:530:520:510:500:490:480:470:460:450:440:430:420:410:400:390:380:370:360:350:340:330:320:310:300:290:280:270:260:250:240:230:220:210:200:190:180:170:160:150:140:130:120:110:100:090:080:070:060:050:040:030:020:01End1:00

Gross Domestic Product [GDP]  GDP is an economic indicator that illustrates how much wealth a country is producing.  GDP is the total value of all final goods and services produced within a country during the calendar year.  GDP is an economic indicator that illustrates how much wealth a country is producing.  GDP is the total value of all final goods and services produced within a country during the calendar year. What are some indicators of individual wealth?

In Order to Count as Part of Our GDP…  Final goods and services  Within a country  Within the calendar year  Final goods and services  Within a country  Within the calendar year Brainstorm: what examples and non- examples can you think of?

Exceptions: What’s NOT GDP?  Illegal goods and services  Transactions without receipts  Used goods  Transfer payments  Illegal goods and services  Transactions without receipts  Used goods  Transfer payments Medicare payments are an example of a transfer payment. They don’t count towards our GDP because they simply move resources from one part of the community to another.

Determining GDP  All goods and services fit into a category: consumption (household purchases), investment (business purchases), government purchases, or exports/imports.  What are exports? Imports? How do we know?  To calculate the GDP of a country, we add everything together but subtract imports  C+I+G+EX-IM = GDP  All goods and services fit into a category: consumption (household purchases), investment (business purchases), government purchases, or exports/imports.  What are exports? Imports? How do we know?  To calculate the GDP of a country, we add everything together but subtract imports  C+I+G+EX-IM = GDP

Examples: Calculating GDP  Consumption: 3 trillion  Investment:7 trillion  Gov. Purchases: 4 trillion  Exports: 3 trillion  Imports: 2 trillion C+I+G+EX-IM = GDP = GDP $15 trillion= GDP of the United States  Consumption: 3 trillion  Investment:7 trillion  Gov. Purchases: 4 trillion  Exports: 3 trillion  Imports: 2 trillion C+I+G+EX-IM = GDP = GDP $15 trillion= GDP of the United States  Consumption: 17 billion  Investment: 12 billion  Gov. Purchases: 35 billion  Exports: 5 billion  Imports: 29 billion C+I+G+EX-IM = GDP = GDP $40 billion= GDP of Luxembourg 1:000:590:580:570:560:550:540:530:520:510:500:490:480:470:460:450:440:430:420:410:400:390:380:370:360:350:340:330:320:310:300:290:280:270:260:250:240:230:220:210:200:190:180:170:160:150:140:130:120:110:100:090:080:070:060:050:040:030:020:01End1:00

Per Capita GDP  Per Capita GDP means the $$ value for each person in the country.  To find the per capita GDP, divide the total GDP by the population.  Per Capita GDP allows us to compare countries of different sizes.  Per Capita GDP means the $$ value for each person in the country.  To find the per capita GDP, divide the total GDP by the population.  Per Capita GDP allows us to compare countries of different sizes. This map shows GDP per capita for the world’s countries.

Example: Calculating Per Capita GDP Divide the overall GDP by the population  We found that the GDP of the U.S. was $15 trillion ($15,000,000,000,000)  The population is 300,000,000 15,000,000/300 = 50,000 The Per Capita GDP in the U.S. is $50,000 Divide the overall GDP by the population  We found that the GDP of the U.S. was $15 trillion ($15,000,000,000,000)  The population is 300,000,000 15,000,000/300 = 50,000 The Per Capita GDP in the U.S. is $50,000  The GDP in Luxembourg is $40 billion  Population in Luxembourg is 500,000  400,000/5 = $80,000 1:000:590:580:570:560:550:540:530:520:510:500:490:480:470:460:450:440:430:420:410:400:390:380:370:360:350:340:330:320:310:300:290:280:270:260:250:240:230:220:210:200:190:180:170:160:150:140:130:120:110:100:090:080:070:060:050:040:030:020:01End1:00

By yourself  Complete the worksheet.  Categorize employment types and answer the analysis questions  Calculate the GDPs and GDP per Capita of different economies.  Anything with a * is extra credit  Complete the worksheet.  Categorize employment types and answer the analysis questions  Calculate the GDPs and GDP per Capita of different economies.  Anything with a * is extra credit 20 minutes End

Homework  Complete one article analysis sheet.  Find an article about unemployment in the US or GDP of the US  Complete the analysis worksheet  Due next class.  Complete one article analysis sheet.  Find an article about unemployment in the US or GDP of the US  Complete the analysis worksheet  Due next class.