OBJECTIVE: COVER VARIOUS METHODS OF
MEASURING THE ECONOMIC HEALTH OF A NATION
Measuring the Economy’s
Performance
National Income Accounting
Is the measurement of the national economy’s
performance
There are five major statistics that...
Gross Domestic Product
Is the total dollar value of all final goods and services
produced in the nation in a single year
...
National Income
Is the total amount of income earned by everyone in
the economy
This is determined by adding up; wages, ...
Keeping track of the Business Cycle
Each month the government checks the price of
over four hundred different products
T...
Aggregate Demand and Supply
Aggregate Demand- is the total quantity of all goods
and services in the entire economy deman...
The Business Cycle
The business cycle
has four parts
Expansion
Peak
Recession
 If the recession is
severe it will be ...
Causes of the Business Cycle
High consumer demand causes
expansion of the economy
Once people begin to spend less
this c...
Review
National Income Accounting measures what?
Ans. the national economy’s performance
What is the GDP?
Ans. Is the ...
Review
National Income Accounting measures what?
Ans. the national economy’s performance
What is the GDP?
Ans. Is the ...
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13 Measuring The Economy’S Performance

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13 Measuring The Economy’S Performance

  1. 1. OBJECTIVE: COVER VARIOUS METHODS OF MEASURING THE ECONOMIC HEALTH OF A NATION Measuring the Economy’s Performance
  2. 2. National Income Accounting Is the measurement of the national economy’s performance There are five major statistics that measure economic performance Gross Domestic Product (GDP), Net Domestic Product (NDP), National Income, Personal Income, and Disposable Income
  3. 3. Gross Domestic Product Is the total dollar value of all final goods and services produced in the nation in a single year NDP does the same thing as GDP except it factors in depreciation Depreciation is the loss of value because of wear and tear to durable goods and capital goods
  4. 4. National Income Is the total amount of income earned by everyone in the economy This is determined by adding up; wages, salaries, income of self-employed, rental income, corporate income, interest on savings and other investments Personal Income is money you have before taxes; Disposable Income is what your have after you pay your taxes
  5. 5. Keeping track of the Business Cycle Each month the government checks the price of over four hundred different products This price check is called the Consumer Price Index (CPI) The CPI is then compared to pervious CPI’s If there is a huge change this could indicate inflation
  6. 6. Aggregate Demand and Supply Aggregate Demand- is the total quantity of all goods and services in the entire economy demanded by all people Aggregate Supply- real domestic output of producers based on the rise and fall of the price level
  7. 7. The Business Cycle The business cycle has four parts Expansion Peak Recession  If the recession is severe it will be called a depression Trough
  8. 8. Causes of the Business Cycle High consumer demand causes expansion of the economy Once people begin to spend less this causes a recession Government policy can also cause the economy to expand or recess
  9. 9. Review National Income Accounting measures what? Ans. the national economy’s performance What is the GDP? Ans. Is the total dollar value of all final goods and services produced in the nation in a single year Name the four parts of the business cycle. Ans. Expansion, Peak, Recession, and Trough
  10. 10. Review National Income Accounting measures what? Ans. the national economy’s performance What is the GDP? Ans. Is the total dollar value of all final goods and services produced in the nation in a single year Name the four parts of the business cycle. Ans. Expansion, Peak, Recession, and Trough

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