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Labor Force
• Unemployment Rate is the % of THIS who
are working or actively seeking
employment
CONSUMER SPENDING
• C in GDP formula
Trough
RECESSION
• A 6 month economic contraction
One Piece of a Corporations Stock
• SHARE
GROSS DOMESTIC PRODUCT
• What does GDP stand for?
DOLLARS
• GDP is measured in _________
GDP
• Total value (in dollars) of all FINAL goods
and services produced within a country
within a given year
Company Stock Abbreviation?
• TICKER
LABOR FORCE = 100
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POPULATION: 250
POPULATION 16-64: 200
EMPLOYED PERSONS: 90
UNEMPLOYED PERSONS: 10
UNEMPLOYMENT RATE = 10%
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POPULATION: 250
POPULATION 16-64: 200
EMPLOYED PERSONS: 90
UNEMPLOYED PERSONS: 10
LABOR FORCE PARTICIPATION
RATE = 50%
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POPULATION: 250
POPULATION 16-64: 200
EMPLOYED PERSONS: 90
UNEMPLOYED PERSONS: 10
INTERMEDIATE GOODS
• Total value (in dollars) of all FINAL goods
and services produced within a country
within a given year
• What does this exclude?
17 (16.7)
• US GDP to nearest trillion
ADD EXPORTS AND SUBTRACT
IMPORTS
• NX
– Add _________
– Subtract _________
5.9%
• Current unemployment rate (national)
INVESTMENT AND INVENTORY
• “I” in GDP formula accounts for
Business _________ and ___________
NOMINAL
• The GDP in actual dollar amount for the
year of production.
• Starts with “N”
Real GDP
FRICTIONAL, STRUCTURAL,
SEASONAL, CYCLICAL
• Four types of unemployment
Fixed Basket Inflation
• CPI
Variable Basket Inflation
• GDP DEFLATOR
CPI?
• CONSUMER PRICE INDEX
3 Major Stock Indices
• DOW JONES
• NASDAQ
• S&P 500
3 Major Stock Indices
• Which is tech heavy?
– DOW
– S&P 500
– NASDAQ
US AND CHINA
• 1st and 2nd Highest GDP in the World
Expansion
A Collection of Investment Assets
Unintended Consequences of
Business
Example of a negative externality
of a fire station next to a residential
neighborhood.
Count or Don’t Count in GDP
• pedicure
Count or Don’t Count in GDP
• McDonald’s secret Big Mac sauce
Beginning of Recession (Point)
Count or Don’t Count in GDP
• A new milkshake machine at the Burgery
Count or Don’t Count in GDP
• A Japanese car sold in the US
Count or Don’t Count in GDP
• A Japanese car sold in Japan
Count or Don’t Count in GDP
• An American car sold in Japan
Count or Don’t Count in GDP
• My salary
Count or Don’t Count in GDP
• Sale of $1237 of Caterpillar stock
Count or Don’t Count in GDP
• An antique vase
GDP formula
• C+I+G+NX