GDP Business Cycle and Economic Growth Karly Butler

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/Glob. Course/formula. sht ml • http: //www. treasury. govt. nz/publications/mediaspeeches/jobsummit • http: //pages. stern. nyu. edu/~nroubini/NOTES/CH AP 4. HTM • http: //www. fiscaltimes. com/Articles/2013/04/26/ Why-Isnt-the-Economy-stronger-Blame-the. Government. aspx#page 1

Word Bank for Crossword Puzzle • • GDP Real GDP Business Cycle Expansion Recession Depression Fiscal Policy Productivity Growth