Transcript Gross Domestic Product - St. Charles Parish Public Schools

Market Indicators
Measuring the health of the market
Gross Domestic Product, Inflation,
Unemployment and the
Consumer Price Index
National Economies have 3 basic goals

Economic growth over time
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Keep unemployment down
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(businesses producing, people spending money)
(make sure people have jobs)
Prices remain stable
(no large upward or downward swings in prices)
 No inflation or recession, no deflation or depression

Inflation is public enemy # 1
Inflation is a general trend for an increase in
overall prices
 Inflation is measured by the
Consumer Price Index (CPI)
 The prices of 90,000 products are measured in
85 locations around the nation every month

Inflation Rates

Degrees of Inflation
 Mild inflation-1-5%
 Strato-inflation: about 10 % to several
hundred %
 Hyperinflation: breakdown of the monetary
system (printing too much money)
Unemployment Rate
% of people in the civilian labor force not working, but looking
for work.
 Civilian labor force= at least16 yrs old, working or looking for
work.
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Employability and Income
Your employability and income depends greatly on your
education, skills, certifications and experience.
We can divide these abilities into 4 categories and
two ranges
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Unskilled labor-digging ditches
Semi-skilled labor-fry cook
Skilled labor-electrician, plumber
Professional labor-doctor, lawyer
Blue Collar
White Collar
Income inequality
refers to the extent to
which income is
distributed in an
uneven manner among
a population.
GDP (nominal)
GDP “Gross Domestic Product” is a measurement of the economy which
includes all…
• consumption (C)
• investment (I)
• government spending (G)
• and net exports (X – M)
…produced within the national borders of a country.
Consumer
spending is by
far the largest
component of
GDP.
Real GDP

To compare one year’s GDP to a later year,
you must remove the inflation from the later
years.
2013=$16,666,300,150,000
2014=$17,348,080,000,000 - (1.6%inflation)
2014=$17,070,510,700,000(Real GDP) +2.5%

Placing each year’s real GDP upon a line graph
will show the Business Cycles of the economy.
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Until 1991 the main measurement for the economy was Gross
National Product (GNP).
It calculates the production of all a nation’s citizens and companies
around the world per year.
GNP
GDP “Gross Domestic Product” is a measurement of the economy which includes all…
• consumption (C)
• investment (I)
• government spending (G)
• and net exports (X – M)
…produced within the national borders of a country.
GDP