Performance StandardSSEMA1 - The student will illustrate the means by which economic activity is measured. b.Define Gross Domestic Product (GDP), economic growth, unemployment, Consumer Price Index (CPI), inflation, stagflation, and aggregate supply and aggregate demand. c.Explain how economic growth, inflation, and unemployment are calculated.d.Identify structural, cyclical, and frictional unemployment.e.Define the stages of the business cycle; include peak, contraction, trough, recovery, expansion as well as recession and depression.
Learning TargetsThe student will understand that…The health of the economy is measured by Gross Domestic Product (GDP), unemployment, inflation, the poverty level, and other economic indicators.Real GDP and price level can be determined using the aggregate supply/aggregate demand graph. Each phase of the business cycle (expansion, peak, contraction, and trough) is characterized by changes in GDP, unemployment and inflation rates.There are three kinds of unemployment that affect the economy in different ways.
Measuring the EconomyThe main economic measures are of the size of the economy (GDP), inflation rate (CPI), and unemployment(unemployment rate). Inflation refers to prices, not the size of the economy.Economic MeasuresGDPUnemploymentCPI
What is GDP? GDP (Gross Domestic Product) refers to the total market value of all final goods and services produced within a country in a given time period. GDP
Calculating GDPIs determined by dividing the economy into four sectors: households, business Investments, government, and foreign trade.