Transcript Unit 1 Econ Indicators Research

1. GDP
a. Define – use Investopedia definition (you may copy and paste)
Gross domestic product (GDP) is
-the monetary value
-of all the finished goods and services
-produced within a country's borders
-in a specific time period.
GDP is usually calculated on an annual basis, it can be calculated on
a quarterly basis as well.
Put simply, GDP is a broad measurement of a nation’s overall economic
activity.
b. i. Did GDP increase or decrease from the 4th qtr. of 2014 to the 1st qtr. of 2015?
(include numbers)
Yes
2014 Q IV = 2.1 2015 Q I = 0.6
The GDP grew 0.6%
ii. Overall, what is your impression of GDP from the beginning of 2014 through the 3rd qtr.
of 2015? (brief summary with complete sentences and numbers to support your ideas)
-.9, 4.6, 4.3, 2.1, .6, 3.9, 2.0
c. use the link to find the following information about GDP (actual dollar values of
GDP in each qtr.)
i. What was the dollar value of GDP in the 1st qtr. of 2013?
$16, 440, 700, 000, 000
ii. What was the dollar value of GDP in the 3rd qtr. of 2015?
$18, 060, 200, 000, 000
http://www.pagetutor.com/trillion/index.html
Let’s Measure a Trillion in Time
How Long Ago Is a Trillion Seconds?
If you count backward, then:
1 million seconds = 12 days ago
1 billion seconds = 31 years ago
1 trillion seconds = 30,000 B.C.
(give or take a decade or two)
Let’s Measure a Trillion in Height
How high is a trillion in $1000 bills?
If you stack a trillion-worth of $1000 bills
together, then:
1 million dollars = 4 inches high
1 billion dollars = 364 feet high
1 trillion dollars = 63 miles high
(give or take a foot or two)
Note that this is a STACK, not laid endto-end.
Let’s Measure a Trillion in Money
With about 305,000,000 people and 111,000,000 households in the U.S.
$1 Million is 1¢ per household,
$1 Billion is $3.28 per person and $9 per household,
$1 Trillion is $3,280 per person and $9,000 per household
If a person’s salary is $40,000 per year it would take:
25 years to earn $1 Million
25 Thousand years to earn $1 Billion,
25 Million years to earn $1 Trillion
If you lived to be 80 years of age, to have:
$1 Million you would have to save $34 each day of your life,
$1 Billion you would have to save $34,000 each day of your life,
$1 Trillion you would have to save $34 Million each day of your life
a. Find GDP data for countries throughout the world. Create a list of the top 10 countries with the largest
GDP (include a link to your source)
http://knoema.com/nwnfkne/world-gdp-ranking-2015-data-and-charts
What is 'Per Capita GDP '
Per capita GDP is a measure of the total output of a country that
takes the gross domestic product (GDP)
and divides it by the number of people in the country.
The per capita GDP is especially useful when comparing one
country to another because
it shows the relative performance of the countries. A rise in per
capita GDP signals growth in the economy and tends to translate as
an increase in productivity.
A better indication for the “Standard of Living”
2. Unemployment
a. Define – use Investopedia definition (you may copy and paste)
--Unemployment occurs when a person who is actively searching for
employment is unable to find work.
--Unemployment is often used as a measure of the health of the
economy.
--The most frequently cited measure of unemployment is the
unemployment rate. This is the number of unemployed persons
divided by the number of people in the labor force.
a. http://www.bls.gov/cps/
use the link to find the following information on the unemployment rate
(hint – look at right hand margin of page for data)
i. Unemployment rate for the US in Nov 2015
5%
ii. Did the number of people unemployed increase or decrease in Nov. 2015?
(include numbers
+ 29,000 people
The Natural Rate of Unemployment
There is always going to be some unemployment
Frictional – between jobs, fired, looking for first job
Structural – skills are no longer needed, need re-training, more
education, new skills
Natural Rate of Unemployment = approx. 5%
The economy is said to be fully employed (full employment)
use this link to answer the following (use the table –not the line graph)
iii. When was the last time the unemployment rate was higher than 5%? (include
the unemployment rate, month, year)
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Jan
5.3
4.7
4.6
5.0
7.8
9.8
9.2
8.3
8.0
6.6
5.7
Feb
5.4
4.8
4.5
4.9
8.3
9.8
9.0
8.3
7.7
6.7
5.5
Mar
5.2
4.7
4.4
5.1
8.7
9.9
9.0
8.2
7.5
6.6
5.5
Apr
5.2
4.7
4.5
5.0
9.0
9.9
9.1
8.2
7.6
6.2
5.4
May
5.1
4.6
4.4
5.4
9.4
9.6
9.0
8.2
7.5
6.3
5.5
Jun
5.0
4.6
4.6
5.6
9.5
9.4
9.1
8.2
7.5
6.1
5.3
Jul
5.0
4.7
4.7
5.8
9.5
9.4
9.0
8.2
7.3
6.2
5.3
Aug
4.9
4.7
4.6
6.1
9.6
9.5
9.0
8.0
7.2
6.1
5.1
Sep
5.0
4.5
4.7
6.1
9.8
9.5
9.0
7.8
7.2
5.9
5.1
Oct
5.0
4.4
4.7
6.5
10.0
9.4
8.8
7.8
7.2
5.7
5.0
Nov
5.0
4.5
4.7
6.8
9.9
9.8
8.6
7.7
7.0
5.8
5.0
Dec
4.9
4.4
5.0
7.3
9.9
9.3
8.5
7.9
6.7
5.6
iv. What was the highest unemployment rate listed since 2005? (include the unemployment
rate, month or months and year or years)
v. Overall, what is your impression of the economy since 2012? (brief summary with
complete sentences and numbers to support your ideas)
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Jan
5.3
4.7
4.6
5.0
7.8
9.8
9.2
8.3
8.0
6.6
5.7
Feb
5.4
4.8
4.5
4.9
8.3
9.8
9.0
8.3
7.7
6.7
5.5
Mar
5.2
4.7
4.4
5.1
8.7
9.9
9.0
8.2
7.5
6.6
5.5
Apr
5.2
4.7
4.5
5.0
9.0
9.9
9.1
8.2
7.6
6.2
5.4
May
5.1
4.6
4.4
5.4
9.4
9.6
9.0
8.2
7.5
6.3
5.5
Jun
5.0
4.6
4.6
5.6
9.5
9.4
9.1
8.2
7.5
6.1
5.3
Jul
5.0
4.7
4.7
5.8
9.5
9.4
9.0
8.2
7.3
6.2
5.3
Aug
4.9
4.7
4.6
6.1
9.6
9.5
9.0
8.0
7.2
6.1
5.1
Sep
5.0
4.5
4.7
6.1
9.8
9.5
9.0
7.8
7.2
5.9
5.1
Oct
5.0
4.4
4.7
6.5
10.0
9.4
8.8
7.8
7.2
5.7
5.0
Nov
5.0
4.5
4.7
6.8
9.9
9.8
8.6
7.7
7.0
5.8
5.0
Dec
4.9
4.4
5.0
7.3
9.9
9.3
8.5
7.9
6.7
5.6