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Measuring Economic Performance

Measuring Economic Performance. Business Cycle Economic Problems Causes of the Business Cycle. Wednesday. EQ: How do different levels of government stimulate economic activity? Same EQ, if you don’t have it, get it NOW! You had HW last night….did you do it? Today we will: Review HW

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Measuring Economic Performance

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  1. Measuring Economic Performance Business Cycle Economic Problems Causes of the Business Cycle

  2. Wednesday • EQ: How do different levels of government stimulate economic activity? • Same EQ, if you don’t have it, get it NOW! • You had HW last night….did you do it? • Today we will: • Review HW • Kahoot review • Business cycle notes • Short clip • more Kahoot review

  3. Kahoot • https://create.kahoot.it/#quiz/83eaf86e-4271-40fd-a1bb-2e28d5a625bc

  4. BUSINESS CYCLE Economic Indicators Consumer Price Index Consumer Confidence Money Supply Durable goods GDP New Businesses New Plants & Equipment Economic Indicators Total Inventories Unemployment Stock Prices Personal Income Delayed Deliveries Building Permits Manufacturing Labor Hours

  5. https://www.youtube.com/watch?v=SYFYla1H7KE

  6. Business Cycle • Peak/Boom – economy operating at high level. High employment, etc…

  7. Business Cycle • Contraction – general decline in business activity.

  8. Business Cycle • Recovery/Expansion – general increase in business activity.

  9. Business Cycle • Trough – economy at lowest point, will begin expansion.

  10. Business Cycle • Recession – economy in decline for a period of 6 months. • Depression – extended period of contraction categorized by millions out of work and the collapse of major institutions.

  11. https://www.youtube.com/watch?v=3GTgniuxA50

  12. ECONOMIC PROBLEMS INFLATION • During a period of inflation, prices of almost everything keep rising. Inflation is a natural occurrence, but high rates of inflation can cause a decline in business activity. • Inflation is caused by an increase in the money supply. Money in circulation, or being spent. RECESSION • During a period of recession, consumers are not spending money, thus business profits and productivity slow down. Periods of recession lead to higher rates of unemployment.

  13. Causes of the Business Cycle • Business Investment – business decisions • If businesses anticipate high sales in the future, they will likely invest; contributes to expansion • If businesses anticipate a lower sales, they will reduce production; slows growth • Government Activity • Policies on taxing and spending (fiscal policy) • Control over the money supply – Federal Reserve (monetary policy) • External Factors • War – increased government spending • Discovery/Loss of raw materials

  14. Business Cycle Practice • We will complete together!!

  15. https://create.kahoot.it/#quiz/e365699b-be2d-4304-8ad5-73b778a939d8https://create.kahoot.it/#quiz/e365699b-be2d-4304-8ad5-73b778a939d8

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