1. American Business Leslie Lum Bellevue College

2. Icebreaker

3. Brainstorming Brainstorming is a group technique to generate as many ideas as possible. We are going to brainstorm in groups about: What is a business? What is the context of a business? What environment does it operate in? Form a group –Brainstorm what a business is –Draw a picture of your ideas –Report back to the class

4. What is the economy?

5. Part of the U.S. economy? Building a house in New Mexico Toyota cars assembled in Kentucky Hair salon in South Dakota Seattle SuperSonics Coca Cola plant in China

6. Who wants to be a millionaire-- http://www.worldbank.org/data/quickreference/quickref.html What is the size of the US economy? How does it compare to the rest of the world?

7. Relative GDP (Nominal vs PPP) (wikipedia.com)

8. GDP per capita (person) (wikipedia.com)

10. Measuring the economy GDP adjusted for inflation. Growth is graphed. Value of goods and services are totaled.

11. The rate of change of GDP Growth Period of Expansion Contraction Recession

12. REAL GDP http://www.whitehouse.gov/fsbr/esbr.html

13. Change in Real GDP

14. Inflation Increase in the price of goods and services How do we measure it? Is it good or bad? What has been the inflation rate for the past 30 years?

15. What consumers spend http://nytimes.com/interactive/2008/05/03/business/20080403_SPENDING_GRAPHIC.html

16. Consumer Price Index http://www.bls.gov/cpi/home.htm#tables

17. Inflation

19. How does the US compare? http://www.nationmaster.com/graph-T/eco_inf_rat_con_pri

24. Role of Government Monetary Policy - Federal Reserve sets interest rates Fiscal Policy - Spending to stimulate economy

25. Can the Government afford to help?

27. Monetary Policy - How it works

28. The Whole Picture The Business Cycle is crucial to business planning

29. How to avoid finding yourself in the middle of a recession Important to look ahead Predict upturns and downturns

30. Economic indicators Construction Manufacturers’ shipments, inventories, orders Employment Consumer credit Wholesale trade Capacity

31. GDP Output by Industry

32. Not all industries are growing or contracting at the same rate

33. Shifts in the American Economy Where should you be?

34. Key terms to analyze and know (as on test) Economy GDP, Real GDP growth GDP per capita Inflation (Consumer Price Index) Business Cycle (expansion, contraction, peak, trough) GDP output by industry Economic indicators