Domain 3 MACROECONOMICS What is Macroeconomics Macroeconomics the
![Domain 3: MACROECONOMICS Domain 3: MACROECONOMICS](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-1.jpg)
![What is Macroeconomics? Macroeconomics • the study of the large economy as a whole, What is Macroeconomics? Macroeconomics • the study of the large economy as a whole,](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-2.jpg)
![Why study the whole economy? Macroeconomics was born during the Great Depression, when the Why study the whole economy? Macroeconomics was born during the Great Depression, when the](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-3.jpg)
![Domain 3. 1 Macroeconomic Measurements Copyright ACDC Leadership 2015 4 Domain 3. 1 Macroeconomic Measurements Copyright ACDC Leadership 2015 4](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-4.jpg)
![For all countries there are three major economic goals: 1. Promote Economic Growth 2. For all countries there are three major economic goals: 1. Promote Economic Growth 2.](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-5.jpg)
![Goal #1 Promote Economic Growth How does a country measure economic growth? 6 Goal #1 Promote Economic Growth How does a country measure economic growth? 6](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-6.jpg)
![How do we know how well the economy is doing? • Economists collect statistics How do we know how well the economy is doing? • Economists collect statistics](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-7.jpg)
![The most important measure of growth is Gross Domestic Product (GDP) is • the The most important measure of growth is Gross Domestic Product (GDP) is • the](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-8.jpg)
![GDP Measures Productivity How do you use GDP? 1. Compare to previous years to GDP Measures Productivity How do you use GDP? 1. Compare to previous years to](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-9.jpg)
![World GDP Distribution How the world would look if a country’s size was equal World GDP Distribution How the world would look if a country’s size was equal](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-10.jpg)
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![How can you measure growth from year to year? % Change in GDP = How can you measure growth from year to year? % Change in GDP =](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-13.jpg)
![Does GDP accurately measure Standard of Living? Standard of living can be measured, in Does GDP accurately measure Standard of Living? Standard of living can be measured, in](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-14.jpg)
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![GDP Per Capita Copyright ACDC Leadership 2015 16 GDP Per Capita Copyright ACDC Leadership 2015 16](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-16.jpg)
![Why Some Countries Have Higher GDP 1. Economic System Productivity Capitalist countries have historically Why Some Countries Have Higher GDP 1. Economic System Productivity Capitalist countries have historically](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-17.jpg)
![What is NOT included in GDP? 1. Intermediate Goods • Production Resources used to What is NOT included in GDP? 1. Intermediate Goods • Production Resources used to](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-18.jpg)
![What is NOT included in GDP? 2. Non-Production Transactions Financial Transactions • Ex: Stocks, What is NOT included in GDP? 2. Non-Production Transactions Financial Transactions • Ex: Stocks,](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-19.jpg)
![Ways to Calculate GDP: 1. Expenditures Approach -Add up all the spending on final Ways to Calculate GDP: 1. Expenditures Approach -Add up all the spending on final](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-20.jpg)
![Expenditures Approach Four Components of GDP = C + I + G + (X-M) Expenditures Approach Four Components of GDP = C + I + G + (X-M)](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-21.jpg)
![Calculating GDP Copyright ACDC Leadership 2015 22 Calculating GDP Copyright ACDC Leadership 2015 22](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-22.jpg)
![Included or Not Included in GDP? For each situation, identify if it is included Included or Not Included in GDP? For each situation, identify if it is included](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-23.jpg)
![Included or not Included in GDP? GDP=$7, 125, 010 1. $10. 00 for movie Included or not Included in GDP? GDP=$7, 125, 010 1. $10. 00 for movie](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-24.jpg)
![2008 Audit Exam 2008 Audit Exam](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-25.jpg)
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![Income Approach Adds up all income earned from producing goods and services 1. Labor Income Approach Adds up all income earned from producing goods and services 1. Labor](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-29.jpg)
![Copyright ACDC Leadership 2015 What are some problems with using GDP to measure the Copyright ACDC Leadership 2015 What are some problems with using GDP to measure the](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-30.jpg)
![Video: Robert Kennedy GDP Speech 31 Video: Robert Kennedy GDP Speech 31](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-31.jpg)
![Nominal GDP vs. Real GDP 32 Nominal GDP vs. Real GDP 32](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-32.jpg)
![Which is the most popular movie of all time? What is the problem with Which is the most popular movie of all time? What is the problem with](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-33.jpg)
![Which is the REAL most popular movie of all time? REAL Box Office Receipts Which is the REAL most popular movie of all time? REAL Box Office Receipts](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-34.jpg)
![The Problem with GDP • If a country’s GDP increased from $4 Billion to The Problem with GDP • If a country’s GDP increased from $4 Billion to](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-35.jpg)
![Real vs. Nominal GDP • GDP measured in current prices. • It does not Real vs. Nominal GDP • GDP measured in current prices. • It does not](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-36.jpg)
![Real vs. Nominal GDP Example 2008 10 cars at $15, 000 each = $150, Real vs. Nominal GDP Example 2008 10 cars at $15, 000 each = $150,](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-37.jpg)
![Real GDP “deflates” nominal GDP by adjusting for inflation in terms of a base Real GDP “deflates” nominal GDP by adjusting for inflation in terms of a base](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-38.jpg)
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- Slides: 43
![Domain 3 MACROECONOMICS Domain 3: MACROECONOMICS](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-1.jpg)
Domain 3: MACROECONOMICS
![What is Macroeconomics Macroeconomics the study of the large economy as a whole What is Macroeconomics? Macroeconomics • the study of the large economy as a whole,](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-2.jpg)
What is Macroeconomics? Macroeconomics • the study of the large economy as a whole, the big picture. • Instead of analyzing one consumer, we analyze everyone. • Instead of analyzing one business we study all businesses. Copyright ACDC Leadership 2015 2
![Why study the whole economy Macroeconomics was born during the Great Depression when the Why study the whole economy? Macroeconomics was born during the Great Depression, when the](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-3.jpg)
Why study the whole economy? Macroeconomics was born during the Great Depression, when the economy had a 25% unemployment rate. Macro was created to: 1. Measure the health of the whole economy. 2. Guide government policies to fix problems. Copyright ACDC Leadership 2015 3
![Domain 3 1 Macroeconomic Measurements Copyright ACDC Leadership 2015 4 Domain 3. 1 Macroeconomic Measurements Copyright ACDC Leadership 2015 4](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-4.jpg)
Domain 3. 1 Macroeconomic Measurements Copyright ACDC Leadership 2015 4
![For all countries there are three major economic goals 1 Promote Economic Growth 2 For all countries there are three major economic goals: 1. Promote Economic Growth 2.](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-5.jpg)
For all countries there are three major economic goals: 1. Promote Economic Growth 2. Limit Unemployment 3. Keep Prices Stable In this unit we will analyze how each of these are measured. Copyright ACDC Leadership 2015 5
![Goal 1 Promote Economic Growth How does a country measure economic growth 6 Goal #1 Promote Economic Growth How does a country measure economic growth? 6](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-6.jpg)
Goal #1 Promote Economic Growth How does a country measure economic growth? 6
![How do we know how well the economy is doing Economists collect statistics How do we know how well the economy is doing? • Economists collect statistics](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-7.jpg)
How do we know how well the economy is doing? • Economists collect statistics on production, income, investment, and savings. • This is called National Income Accounting. 7
![The most important measure of growth is Gross Domestic Product GDP is the The most important measure of growth is Gross Domestic Product (GDP) is • the](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-8.jpg)
The most important measure of growth is Gross Domestic Product (GDP) is • the dollar value of all final goods and services produced within a country’s borders in one year. Qualifying Factors of GDP: • Dollar Value measured in dollars, not units • Final Goods does not include the value of Intermediate Goods. • One Year annual economic performance 8
![GDP Measures Productivity How do you use GDP 1 Compare to previous years to GDP Measures Productivity How do you use GDP? 1. Compare to previous years to](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-9.jpg)
GDP Measures Productivity How do you use GDP? 1. Compare to previous years to identify rate of growth 2. Compare policy changes to find out if a new policy works 3. Compare to other countries to determine if we should be more productive. Which 15 countries have the highest GDP? Copyright ACDC Leadership 2015 9
![World GDP Distribution How the world would look if a countrys size was equal World GDP Distribution How the world would look if a country’s size was equal](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-10.jpg)
World GDP Distribution How the world would look if a country’s size was equal to its GDP: Copyright ACDC Leadership 2015 10
![](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-11.jpg)
![Copyright ACDC Leadership 2015 12 Copyright ACDC Leadership 2015 12](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-12.jpg)
Copyright ACDC Leadership 2015 12
![How can you measure growth from year to year Change in GDP How can you measure growth from year to year? % Change in GDP =](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-13.jpg)
How can you measure growth from year to year? % Change in GDP = Year 2 - Year 1 X 100 Mordor’s GDP in 2014 was $4000 Mordor’s GDP in 2015 was $5000 What is the % Change in GDP? Transylvania’s GDP in 2014 was $2, 000 Transylvania’s GDP in 2015 was $2, 100 What is the % Change in GDP? 13
![Does GDP accurately measure Standard of Living Standard of living can be measured in Does GDP accurately measure Standard of Living? Standard of living can be measured, in](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-14.jpg)
Does GDP accurately measure Standard of Living? Standard of living can be measured, in part, by how well the economy is doing… But it needs to be adjusted to reflect the size of the nation’s population. GDP Per Capita (per person) • GDP divided by the population. It identifies on average how many products each person produces. GDP per capita is the best measure of a nation’s standard of living. Copyright ACDC Leadership 2015 14
![Most Populated Countries Copyright ACDC Leadership 2015 15 Most Populated Countries Copyright ACDC Leadership 2015 15](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-15.jpg)
Most Populated Countries Copyright ACDC Leadership 2015 15
![GDP Per Capita Copyright ACDC Leadership 2015 16 GDP Per Capita Copyright ACDC Leadership 2015 16](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-16.jpg)
GDP Per Capita Copyright ACDC Leadership 2015 16
![Why Some Countries Have Higher GDP 1 Economic System Productivity Capitalist countries have historically Why Some Countries Have Higher GDP 1. Economic System Productivity Capitalist countries have historically](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-17.jpg)
Why Some Countries Have Higher GDP 1. Economic System Productivity Capitalist countries have historically had more economic growth. – – Capital (like robots) can produce more than people Countries with more capital, can produce more products than countries without a lot of capital. 2. Property Rights 3. Capital (ex: machinery, tools, man-made resources) • India has over a billion people (human resources) but relatively few capital resources and therefore a lower GDP than the U. S. • Japan has few natural resources but a high GDP 4. Human Capital (Knowledge) 5. Natural Resources Ex: Syria has a lower GDP because it is mostly desert. Copyright ACDC Leadership 2015
![What is NOT included in GDP 1 Intermediate Goods Production Resources used to What is NOT included in GDP? 1. Intermediate Goods • Production Resources used to](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-18.jpg)
What is NOT included in GDP? 1. Intermediate Goods • Production Resources used to make final goods don’t count. 18
![What is NOT included in GDP 2 NonProduction Transactions Financial Transactions Ex Stocks What is NOT included in GDP? 2. Non-Production Transactions Financial Transactions • Ex: Stocks,](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-19.jpg)
What is NOT included in GDP? 2. Non-Production Transactions Financial Transactions • Ex: Stocks, bonds, Real estate Used Goods • Ex: used cars, stuff you buy on Craig’s List 3. Non-Market and Illegal Activities Examples: (paid and Unpaid) • • Copyright ACDC Leadership 2015 Stay at home Mom Hobbyist Black Markets Illegal Drugs 19
![Ways to Calculate GDP 1 Expenditures Approach Add up all the spending on final Ways to Calculate GDP: 1. Expenditures Approach -Add up all the spending on final](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-20.jpg)
Ways to Calculate GDP: 1. Expenditures Approach -Add up all the spending on final goods and services produced in a given year. 2. Income Approach -Add up all the income that resulted from selling all final goods and services produced in a given year. Adding up how much was spent on goods and services and how much income was earned should generate the same number Copyright ACDC Leadership 2015 20
![Expenditures Approach Four Components of GDP C I G XM Expenditures Approach Four Components of GDP = C + I + G + (X-M)](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-21.jpg)
Expenditures Approach Four Components of GDP = C + I + G + (X-M) 1. Consumer Spending 70% of U. S. GDP Purchases of final goods by private individuals. Ex: $5 Sandwich at Subway 2. Investment 15% of U. S. GDP Businesses spending tools and equipment. Ex: Walmart buys self checkout machines 3. Government Spending 20% of U. S. GDP Ex: School, tanks, but NOT transfer payments 4. Net Exports (X) – Imports (M) Ex: Value of 3 Ford Focuses minus 2 Hondas
![Calculating GDP Copyright ACDC Leadership 2015 22 Calculating GDP Copyright ACDC Leadership 2015 22](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-22.jpg)
Calculating GDP Copyright ACDC Leadership 2015 22
![Included or Not Included in GDP For each situation identify if it is included Included or Not Included in GDP? For each situation, identify if it is included](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-23.jpg)
Included or Not Included in GDP? For each situation, identify if it is included in GDP then identify the category C, I, G, or Xn 1. $10. 00 for movie tickets 2. $5 M Increase in defense expenditures 3. $45 for used economics textbook 4. Ford makes new $2 M factory 5. $20 K Toyota made and sold in Mexico 6. $10 K Profit from selling stocks 7. $15 K car made in US, sold in Canada 8. $10 K Tuition to attend college 9. $120 Social Security payment to Bob 10. Farmer purchases new $100 K tractor Copyright ACDC Leadership 2015 23
![Included or not Included in GDP GDP7 125 010 1 10 00 for movie Included or not Included in GDP? GDP=$7, 125, 010 1. $10. 00 for movie](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-24.jpg)
Included or not Included in GDP? GDP=$7, 125, 010 1. $10. 00 for movie tickets 2. $5 M Increase in defense expenditures X $45 for used economics textbook 4. Ford makes new $2 M factory X $20 K Toyota made and sold in Mexico X $10 K Profit from selling stocks 7. $15 K car made in US, sold in Canada 8. $10 K Tuition to attend college X $120 Social Security payment to Bob 10. Farmer purchases new $100 K tractor 24 Copyright ACDC Leadership 2015
![2008 Audit Exam 2008 Audit Exam](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-25.jpg)
2008 Audit Exam
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![2007 FRQ Copyright ACDC Leadership 2015 27 2007 FRQ Copyright ACDC Leadership 2015 27](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-27.jpg)
2007 FRQ Copyright ACDC Leadership 2015 27
![2007 FRQ Copyright ACDC Leadership 2015 28 2007 FRQ Copyright ACDC Leadership 2015 28](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-28.jpg)
2007 FRQ Copyright ACDC Leadership 2015 28
![Income Approach Adds up all income earned from producing goods and services 1 Labor Income Approach Adds up all income earned from producing goods and services 1. Labor](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-29.jpg)
Income Approach Adds up all income earned from producing goods and services 1. Labor Income Purchases of final goods by private individuals. Ex: $5 Sandwich at Subway 2. Rental Income earned from property owned by individuals 3. Interest Income Interest earned from loaning money to businesses 4. Profit Money businesses have after paying all their costs These are called FACTOR PAYMENTS. Labor earns wages, land earns rent, capital earns interest, and entrepreneurship earns profit. Copyright ACDC Leadership 2015 29
![Copyright ACDC Leadership 2015 What are some problems with using GDP to measure the Copyright ACDC Leadership 2015 What are some problems with using GDP to measure the](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-30.jpg)
Copyright ACDC Leadership 2015 What are some problems with using GDP to measure the nation’s standard of living? 30
![Video Robert Kennedy GDP Speech 31 Video: Robert Kennedy GDP Speech 31](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-31.jpg)
Video: Robert Kennedy GDP Speech 31
![Nominal GDP vs Real GDP 32 Nominal GDP vs. Real GDP 32](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-32.jpg)
Nominal GDP vs. Real GDP 32
![Which is the most popular movie of all time What is the problem with Which is the most popular movie of all time? What is the problem with](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-33.jpg)
Which is the most popular movie of all time? What is the problem with this method? Nominal Box Office Receipts Copyright ACDC Leadership 2015 33
![Which is the REAL most popular movie of all time REAL Box Office Receipts Which is the REAL most popular movie of all time? REAL Box Office Receipts](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-34.jpg)
Which is the REAL most popular movie of all time? REAL Box Office Receipts (adjusted for inflation) Copyright ACDC Leadership 2015
![The Problem with GDP If a countrys GDP increased from 4 Billion to The Problem with GDP • If a country’s GDP increased from $4 Billion to](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-35.jpg)
The Problem with GDP • If a country’s GDP increased from $4 Billion to $5 Billion in one year, is the country experiencing economic growth? • Did the country definitely produce 25% more products? • Did inflation cause the data to be misleading? What is Inflation? A rising general level of prices EX: If apples are the only thing being produced Year 1: 10 apples at $1 each; GDP = $10 Year 2: 10 apples x $1. 25; GDP = $12. 50 Copyright ACDC Leadership 2015 GDP is rising, but the country is worse off! 35
![Real vs Nominal GDP GDP measured in current prices It does not Real vs. Nominal GDP • GDP measured in current prices. • It does not](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-36.jpg)
Real vs. Nominal GDP • GDP measured in current prices. • It does not account for inflation from year to year. Real GDP • GDP expressed in constant, or unchanging, dollars. • Real GDP adjusts for inflation. REAL GDP IS THE BEST MEASURE OF ECONOMIC GROWTH! Copyright ACDC Leadership 2015 36
![Real vs Nominal GDP Example 2008 10 cars at 15 000 each 150 Real vs. Nominal GDP Example 2008 10 cars at $15, 000 each = $150,](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-37.jpg)
Real vs. Nominal GDP Example 2008 10 cars at $15, 000 each = $150, 000 10 trucks at $20, 000 each = $200, 000 Nominal GDP = $350, 000 2009 10 cars at $16, 000 each = $160, 000 10 trucks at $21, 000 each= $210, 000 Nominal GDP = $370, 000 The GDP in year 2008 shows the dollar value of all final goods produced. The nominal GDP in year 2009 is higher which suggests that the economy is improving. But how much is the REAL GDP? How do you get it? 2009 10 cars at $15, 000 each = $150, 000 10 trucks at $20, 000 each= $200, 000 REAL GDP = $350, 000 Copyright ACDC Leadership 2015 Use 2008 Prices. The Real GDP for 2009 is the same as 2008 after we adjust for inflation. 37
![Real GDP deflates nominal GDP by adjusting for inflation in terms of a base Real GDP “deflates” nominal GDP by adjusting for inflation in terms of a base](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-38.jpg)
Real GDP “deflates” nominal GDP by adjusting for inflation in terms of a base year prices. Copyright ACDC Leadership 2015 38
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20012 Exam
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The Business Cycle 41
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The Business Cycle The national economy goes up and down like a roller coaster over time Real GDP Inflation Unemployment Peak Real GDP Trough Full Employment Recession (Contraction) Recovery (Expansion) Time A recession is 6 month period of decline in Real GDP. (If really bad…then depression)42 Copyright ACDC Leadership 2015
![REVIEW 1 2 3 4 5 6 7 8 9 Define Macroeconomics What are REVIEW 1. 2. 3. 4. 5. 6. 7. 8. 9. Define Macroeconomics What are](https://slidetodoc.com/presentation_image_h2/498c5bef53f45ddbae78a35d4c50972d/image-43.jpg)
REVIEW 1. 2. 3. 4. 5. 6. 7. 8. 9. Define Macroeconomics What are 3 economic goals for all countries? Identify the 3 key parts of the definition of GDP How do we use GDP? Identify what is NOT included in GDP List the 4 components of GDP Define Inflation Explain difference between Nominal & Real GDP Explain Real GDP per Capita Copyright ACDC Leadership 2015
Z transform online
S domain to z domain
Z domain to frequency domain
Domain specific vs domain general
What are language processing activities
Time domain and frequency domain
Domain specific software engineering
Z transform
Problem domain vs knowledge domain
Codomain vs range
Diễn thế sinh thái là
Frameset trong html5
Ví dụ về giọng cùng tên
Làm thế nào để 102-1=99
Hát lên người ơi alleluia
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Lời thề hippocrates
đại từ thay thế
Quá trình desamine hóa có thể tạo ra
Vẽ hình chiếu vuông góc của vật thể sau
Công của trọng lực
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Dot
Bổ thể
Vẽ hình chiếu đứng bằng cạnh của vật thể
độ dài liên kết
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điện thế nghỉ
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Thế nào là sự mỏi cơ
Trời xanh đây là của chúng ta thể thơ
Bảng số nguyên tố lớn hơn 1000
Thiếu nhi thế giới liên hoan
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Các châu lục và đại dương trên thế giới
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Hệ hô hấp
Tư thế ngồi viết
đặc điểm cơ thể của người tối cổ
Cái miệng bé xinh thế chỉ nói điều hay thôi
Hát kết hợp bộ gõ cơ thể
Mật thư tọa độ 5x5