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CALL TO ORDER

CALL TO ORDER. Use the scissors to cut the money. You have the remainder of this song. Welcome to Unit 8: C ash R ules E verything A round M e. Today’s Objective. Students will be able to identify and describe how GDP, CPI, Inflation, and Unemployment measure the health of our economy BY

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CALL TO ORDER

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  1. CALL TO ORDER Use the scissors to cut the money. You have the remainder of this song.

  2. Welcome to Unit 8: CashRulesEverythingAroundMe

  3. Today’s Objective Students will be able to identify and describe how GDP, CPI, Inflation, and Unemployment measure the health of our economy BY • listening to an audio clip about the 2008 economic collapse, • completing a graphic organizer, • participating in a simulation (all week) and • calculating the GDPs for various countries.

  4. Listen to the sound clip. How do the occurrences indicate a recession?

  5. Expansion A period of economic growth. Unemployment goes down. GDP goes up. CPI goes up (inflation).

  6. Expansion During expansions, money flows well between consumers, businesses, and banks. • Many people in Baltimore are employed, so they buy new cars. • General Motors wants to produce more cars, so it gets a loan from Bank of America to hire workers. • General Motors hires more workers to make more cars. • These new workers now have jobs, so they spend money on new refrigerators…

  7. Recession A period of economic downturn. Unemployment goes up. GDP goes down. CPI goes down.

  8. Recession During a recession, money does not flow well between consumers, businesses, and banks. • General Motors goes out of business and all of its workers lose their jobs. • These unemployed people stop buying coffee and muffins. • Starbucks tries to get a loan to stay in business. • Bank of America won’t loan money to Starbucks because it thinks it is going out-of-business and won’t pay them back. • Starbucks goes out of business and all of its workers lose their jobs. • These unemployed people stop buying…

  9. Unemployment • You must able to work, want to work, and unable to find a job • Unemployment Rate = Percentage of people who fit this requirement I’m looking for work but I can’t find a job! Bad? Over 5% Good? Under 5% What do you think the current unemployment rate it? Bad. 9.5%

  10. CPI: ConsumerPriceIndex It is a basket of goods that we use to measure how prices rise and fall (inflation).

  11. Consumer Price Index A positive CPI means that prices are going up

  12. Inflation When the price of goods and services go up Cost: 1944 Cost: 2011

  13. GDP: GrossDomesticProduct The total value of all final goods and services made IN a country during the year. If you bought everything that was for sale in the United States in one year, how much would it cost you? The answer: $14 trillion That’s $14,000,000,000,000.00

  14. Gross Domestic Product

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