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=rG5J2i362Rs&feature=related

Quick Quiz1. 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?