1. Bellringer
1. Calculate the GDP per
capita for Travistan where
the GDP is $100 billion and
the population is 10 million
(.01 billion)
2. If the Mexico’s GDP per
capita of $13,360, is
Travistan richer or poorer?
3. Do an OPTIC for the graph
on the right >>>>>>>>>>>

4. Why Unemployment?
• You may be
unemployed
• Problem for
society
• Can cause
recessions

5. Think back to US history
• Why was the “Great Depression” so bad?
• How did the government try to fix it?

6. Economic Event’s Name?
Effect on GDP?

7. Unemployment’s effect on GDP
•GDP = C + I + G+ (ExportsImports)
• Lower Consumer Spending
• Lower investments, causes lower capital for
new businesses
• Lower Exports
• Lower Imports
• Lower Government spending because lower
tax revenues

8. Labor Force
• All 16 years and older who can work
• “LF”

9. Not included in Labor Force
•
•
•
•
•
•
•
•
Children
Fulltime Students
Military
Physically Disabled
Mentally Disabled
Prisoners (over 2 million right now!)
Discouraged Workers
Retirees

10. Unemployment Rate Calculation
• Simple calculation
• # unemployed in labor force
• # in labor force
100
Always a %
Higher the % the worse it is for the
country

11. USA Unemployment
Probability of unemployment

12. Arizona’s Unemployment Rate

13. Source: US BLS

18. GDP Assignment formula
Draw a picture of each of the 4 parts of the GDP
1.
2. Which part of the GDP formula is the largest? (It’s the part
you are the most involved in)
3. How many recessions has Argentina had since 1900?
4. When was their worst one?
5. Why are recessions good for selling inferior goods?
6. Calculate US GDP 2010
Consumers: $12 trillion
Investment: $1.45 trillion
Government: $2 trillion
Exports: $1 trillion
Imports: $2.05 trillion
7. Describe US
Trade (net….?)