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Goal 9. GDP and Stock. Value of all goods and services within a country. This accounts for FINAL GOODS. GNP(Gross National Product)- Produced by Americans (abroad) Real GDP: Adjusted to inflation Per Capita GDP: per person. Gross Domestic Product (GDP).
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Goal 9 GDP and Stock
Value of all goods and services within a country. • This accounts for FINAL GOODS. • GNP(Gross National Product)-Produced by Americans (abroad) • Real GDP: Adjusted to inflation • Per Capita GDP: per person Gross Domestic Product (GDP)
Peak, Contraction, Trough, Expansion. A B D Draw this Chart and match the word with the letter. C
Peak Contraction Trough Expansion Phases of Business Cycles/GDP CHART
Peak: GDP stops rising, height of economic expansion • Contraction: Economic decline with falling GDP and Rising unemployment • Trough: Lowest point in contraction • Expansion: GDP Rise, falling unemployment, business prospers Phases
Recession-prolonged contraction for 6-18 months • Depression is longer with high unemployment • Fiscal Policy (Expansion) • Gov’t policy on spending and taxes • Common action is to lower taxes and increase spending (transfer payment) Terms to know dealing with phases…
Great Depression • Speculation: investments with borrowed money • Many people invested, even if it put them in debt. • Stock market crashes, people lose money. • FDR takes office with his plan “New Deal” • Drastically increase government spending • Starts entitlements/public transfer payments (SS, Welfare)
Stock-shares in a company • Bonds-loans • Why do corporations sell stock? • Mutual funds • Collections of various stocks (less risk, less reward) • What determines the prices of stock? Investing
Peak of Reinvestment Peak of investment Investments Fail Reinvestment occurs Investing