The Macroeconomic Perspective Unit 3, Lesson 1

The Macroeconomic Perspective Macroeconomic Perspective: Looking at the overall aspects and workings of a national economy. Microeconomic Perspective: Concerned with overall decisions by buyers and sellers. What are the major goals the national economy?

The Macroeconomic Perspective Macroeconomic Perspective: Looking at the overall aspects and workings of a national economy. Microeconomic Perspective: Concerned with overall decisions by buyers and sellers. What are the major goals the national economy? Stable prices Low unemployment Economic growth

How are they Connected? According to Microeconomics, households concerned about unemployment would participate less in the market. No job = Reduction in spending Businesses might produce less and need less resources (ex: labor).

How are they Connected? According to Macroeconomics, unemployment can hinder economic growth and stability when there is less overall demand (fewer buyers) to purchase goods and services. Macro focuses on OVERALL view (or Aggregate).

The Macroeconomic Perspective Key Measures of the National Economy * Can you define these? Gross Domestic Product (GDP) Unemployment Rate Consumer Price Index (CPI)

GDP Video Clip & Info Show clip from wikispaces Michigan Unemployment Rate ?data_tool=XGtable ?data_tool=XGtable Michigan CPI -

Questions for Consideration How do these images relate to the national economy? Looking at the collage, what economic challenges do you see arising in the United States?

Macroeconomic Challenges Issues that arise in a national economy that affect many communities across the country. What challenges do we face in today’s economy? (student responses) Home foreclosures, banking crisis, high unemployment, high personal and national debt

United States Economy (Article) Read the article with your partner. Highlight the macroeconomic concepts in the article that were highlighted in photographs and intro slides. Questions to Consider What Macroeconomic challenges currently confront the United States? How do these challenges affect people?

How is our economy doing? Some Statistical Measurements: Employment declined by 800,000 jobs in January of 2010 and the U.S. unemployment rate at around 10% percent. Consumer spending declined by 8% in Jan Economic growth (GDP) decreased 0.7 percent. (Oct. 29, 2009) What do these statistics reveal about our economy?

How is our economy doing? Some Statistical Measurements: Employment declined by 800,000 jobs in January of 2010 and the U.S. unemployment rate at around 10% percent. Consumer spending declined by 8% in Jan Economic growth (GDP) decreased 0.7 percent. (Oct. 29, 2009) What do these statistics reveal about our economy? Do you expect that production will grow, remain the unchanged, or decline in the next year?

Why does Macroeconomics matter? Businesses: Understanding macroeconomic trends helps businesses be responsive to the environment in which they compete Households/ Consumers: Understanding macroeconomic trends helps people make informed decisions about personal finance and voting. Is this a good time to buy a car? Refinance your home? Change to a new job? Go to college? How candidates and their policies affect my economic well- being

Three Flap Assignment Create a three flap on the 3 major goals of our national economy. Name and small visual on outer flap. 1-2 sentences describing the goal. 1 sentence explaining why it is important. This should be done on the inside of the flap.

Exit Slip What is macroeconomics and why is it important? Reflect on your needs as well as people in general. Fill in Lesson 1 Vocab.