Download Business Cycle/ Economic Indicators Chart

Unit 4: Measuring Economic Performance
Goals – 9.01, 9.02, 9.04, 9.08, 10.02, 10,03, 10.05
Unit Essential Questions
1) What are the different phases of the business cycle?
2) How do economic indicators help to analyze the health of the economy?
BLOCK CLASS
Day 1:

Business Cycle, Inflation, & Unemployment (Economics Document)

Review Business Cycle, Inflation, & Unemployment
Day 2:

Business Cycle/Economic Indicators Chart

Economic Indicators Worksheet

Review Economic Indicators
Day 3:

Review Economic Indicators

Business Cycle/Economic Indicators Chart Due
Unit 4 – Measuring Economic Performance:
GDP, Business Cycles, Inflation, Unemployment
NCSCOS – 9.01, 9.02, 9.04, 9.08, 10.02, 10.03, 10.05
Chapter 23, Section (pgs. 638-644)
1. What is the Gross Domestic Product (GDP)?
__________________________________________________________________
__________________________________________________________________
2. When comparing GDP from one year to another what needs to be removed in
order to get a true comparison? ________________________________________
3. What do we call GDP minus inflation? __________________________________
4. What is the business cycle? ___________________________________________
5. Identify the phases of the business cycle on the following diagram:
6. If real GDP were increasing where would the economy be on the business cycle?
_________________________________________________________________
7. If real GDP was on the decline where would the economy be on the business
cycle? ____________________________________________________________
8. What is the lowest point in the business cycle called? ______________________
9. What is the highest point called? _______________________________________
10. What is a recession? ________________________________________________
11. Which usually last longer periods of expansion or recession? ________________
12. What are economic indicators? ________________________________________
__________________________________________________________________
13. Identify the following economic indicators and what they would indicate about the
economy if they were going up:
Direction in expanding economy
Economic Indicator
Description
Unemployment Rate
Delayed Deliveries
New Durable Goods Orders
Stock Market
New Building Permits
14. Identify the following terms concerning the stock market:
a. Bull Market _________________________________________________
b. Bear Market _________________________________________________
c. Stock Indexes ________________________________________________
i. Dow Jones Industrial Average (DJIA) ______________________
______________________________________________________
ii. Standard & Poor’s 500 (S&P 500) _________________________
______________________________________________________
d. Stock Exchanges _____________________________________________
i. NYSE ________________________________________________
15. Why do stock prices change? __________________________________________
__________________________________________________________________
16. What is inflation? __________________________________________________
17. How do we measure inflation? Consumer Price Index _____________________
__________________________________________________________________
18. What does inflation do to the purchasing power of the dollar?
__________________________________________________________________
19. Who does inflation hurt most? _________________________________________
20. What causes inflation?
a. Cost-Push Inflation ___________________________________________
____________________________________________________________
b. Demand-Pull Inflation ________________________________________
____________________________________________________________
21. What should the government do if we notice that inflation is rising too much?
__________________________________________________________________
22. What should the government do if the economy is slipping into recession?
__________________________________________________________________
23. What tools does the government have to affect changes in the economy?
a. Fiscal policy _________________________________________________
____________________________________________________________
b. Monetary policy ______________________________________________
____________________________________________________________
Chapter 24, Section 3 (pgs. 647-649)
24. What does the government do to help individuals who suffer from poverty in the
United States?
a. Poverty line = ________________________________________________
b. Identify each of the following welfare programs established to combat
poverty in the United States:
i. Food stamps __________________________________________
ii. (WIC) Women Infants and Children ______________________
______________________________________________________
(SSI) Supplemental Security Income
Business Cycle/ Economic Indicators Chart
Objective: Analyze the effect of economic indicators on the business
cycle.
Assignment: Each student must draw the business cycle on a sheet of
8.5 x 11 piece of paper. Under each phase you must place which
economic indicators belong in each phase. Assume that economists
have made the following reports about these leading economic
indicators. Where would these indicators be placed on the business
cycle?
Put the number of the statement where it should go on the business cycle
Economic Indicators:
1) Stock prices show steady increases over the last six months.
2) Unemployment claims are up 5%.
3) Total inventories have slightly increased.
4) The # of building permits issued in the last six months have
drastically increased.
5) Manufacturing labor hours show steady increases.
6) New plants & equipment have increased sharply.
7) Delayed deliveries have drastically reduced.
8) New durable good orders have declined slightly.
9) The number of new businesses formed has sharply increased.