1. Bellringer
1. Calculate the GDP for Portugal in
2008. (in millions)
Consumers spent: $90,000
Investment: $40,000
Exported $50,000
Imports $90,000
Portugal: 10 million people
Government: $10,000
Currency: Euro
2. What is their GDP per capita?
3. If the US GDP per capita is $49,000
and Mexico’s is $9,700, is Portugal
rich or poor? (explain)

2. Portugal

7. The Business Cycle
• Changes in GDP over time
prosperity
recovery

8. Recession
• 6 + months of negative GDP growth
• 3 Causes?
Prosperity
• 6+ months of positive GDP growth
• 3 causes?

15. GDP Change Assignment
1. Which part of the GDP formula is the largest? (It’s the part
you are the most involved in)
2. How many recessions has Argentina had since 1900?
3. When was their worst one?
4. Why are recessions good for selling inferior goods?
5. Calculate US GDP 2010
Consumers: $12 trillion
Investment: $1.5 trillion
Government: $2 trillion
Exports: $1 trillion
Imports: $2 trillion
6. Describe US
Trade (net….?)