1. GDP, CPI, Unemployment and a bunch of numbers
Economics
MHS Mr. Burdette

4. GDP Gross Domestic Product
Measures the value of all the “stuff” we produce
Measure of how productive a country is

5. Consumer Consumption
Goods and services purchased by people in households for personal use

6. Business Investment Capital goods, buildings, machinery.
Goods produced but not yet sold

7. Government Purchases
Not transfer payments (welfare or social security)
Only purchases that increase productivity

8. Net Exports Balance of trade
More exports than imports = positive number
More imports than exports = negative number

9. Who’s number 1?
By far, United States out produces all other countries.
The European Union has a higher GDP
Made up of 27 countries

10. The Rankings!

11. Not the full story!

12. What makes up our GDP?
Consumer Consumption is the largest portion by far
United State’s consumes more goods (per capita) than any other country
Our businesses are free to invest and our markets are relatively open (closing quickly)
Government invests (not always intelligently)
Our high consumption also leads to negative exports (highly imbalanced trade)

13. Unemployment
BLS measurement of percentage unemployed in the United States
Useful tool to look at
the health of the economy

15. Misleading numbers How can unemployment be misleading
Does not count people not looking for work
Doesn’t count the “partially employed” or under employed
Fluctuates largely by season (holiday shopping?)

16. CPI Consumer Price Index Measures inflation
Takes a basket of goodies and determines the prices
Historically, U.S. prices have been rising