Transcript By: Tom bovill

Promoting Growth and Stability
Tracking Business Cycles



Macroeconomics examines the major trends for
the economy
Macroeconomics is the study of the economic
behavior and decision making of small units, such
as individuals, families and businesses
Economist measure the economic status by
calculating the nations Gross domestic product
(GDP)
Promoting Economic Strength



One aim of the federal economic policy is to create
and provide jobs for everyone who is unable to
find work.
Many economists consider an unemployment rate
of four to six percent desirable
One major indicator of economic stability is the
general price levels
Technology and Productivity
American economy maintains a far higher standard of
living that most of the world
 Improvements in technology allow an economy to
produce more output from the same or smaller quantity
of inputs or resources
 The government has its own research institution that
also produces a steady stream of new inventions,
such as NASA

Vocabulary Terms!

Macroeconomics- the study of behavior and decision
making of entire economies.

Microeconomics- study of the economic behavior and
decision making of small units.

Business Cycle- period of macroeconomic expansion
followed by a period of contraction

Employment- the federal government wants to provide jobs
for everyone who is able to work.
Vocabulary Cont..

Growth- We want a higher standard of living than that of
previous generations.

Economic Citizenship- As a voter your elective choices
will help guide government economic policy

Growth- We want a higher standard of living than that of
previous generations.

Stability- gives consumers, producers, and investor’s
confidence in the economy and in our financial
institutions
Lets watch this quick video!

http://www.youtube.com/watch?v=rG5J2
i362Rs&feature=related
Quick Quiz
1.
What does GDP stand for?
2.
Macroeconomics examines the major trends in what?
3.
(True/False) One aim of the federal economic policy is to
create and provide money
4.
(True/False) America has a higher standard of living than
the rest of the world?
5.
Who created NASA?