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GDP, Business Cycle, and
Economic Growth
Karly Butler
Hunter Lent
Britton Smith
GDP and Real GDP
• GDP stands for Gross Domestic Product
• GDP is the value of goods and services produced within a
country in a given period of time
• Real GDP is the measure of the value of the economic
output adjusted for price changes
How to calculate GDP
• GDP=Consumer Spending +Investment made by
industry+ excess of exports over imports+
government spending
• Calculate: $250+$100+($60-$90)+$650= GDP
Business Cycle
• The alternating periods of
growth and decline that the
economy goes through
• Depression: the lowest point of
an economy
• Economic boom: fast economic
growth
$1220
Business cycle
• Economic growth/ expansion: when real outputs
increase and the sizes and amounts of
businesses increase
• Economic downturn: when the growth rates fall
and the economy heads to a recession
• Recession: a period of negative economic growth
and real outputs fall
Business cycle
Money affected in the cycle
• When we are at the peak of the business cycle,
money and credit are higher. Consumer
spending, economic growth and interest rates
increase.
• On the low end of the business cycle, interest
rates decrease, consumer spending goes down,
and economic downturn/ recession occur.
Fiscal Policy
• Fiscal policy is the means by which a
government adjusts its levels of spending in
order to monitor and influence a nation's
economy.
• In this policy, the government can influence
productivity levels by increasing or decreasing
tax levels and public spending.
Productivity Growth
• Productivity growth is an increase in the output
of each worker per hour of work.
• Factors that affect productivity growth are
technology progress, skill level of the Labor
force, weather, and the cost of imported inputs.
Current Event
• Our current event is about the increasing and decreasing
of the GDP of the United States. The economy has been
increasing each quarter but at a low rate. The rate is
supposed to have gone up enormously but has not.It has
gone up but not as much as they were expecting it to.
• This relates to our topic because the people used the
GDP equation to calculate the rates per quarter and the
article talked about the vocabulary words that are in our
powerpoint.
Website
Works Cited
• http://www.seguinfinancial.com/stages-ofeconomic-cycles.php
• http://www.mindtools.net/GlobCourse/formula.sht
ml
• http://www.treasury.govt.nz/publications/mediaspeeches/speeches/jobsummit
• http://pages.stern.nyu.edu/~nroubini/NOTES/CH
AP4.HTM
• http://www.fiscaltimes.com/Articles/2013/04/26/
Why-Isnt-the-Economy-stronger-Blame-theGovernment.aspx#page1
Word Bank for Crossword Puzzle
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GDP
Real GDP
Business Cycle
Expansion
Recession
Depression
Fiscal Policy
Productivity Growth