itb chap 02
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Introduction to Business© Thomson South-Western
ChapterChapterChapterChapter
Economic Activity
2-12-1 Measuring Economic Activity
2-22-2 Economic Conditions Change
2-32-3 Other Measures of Business Activity
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Introduction to Business© Thomson South-Western
Chapter 2
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LESSON 2-1LESSON 2-1
Measuring Economic Activity
Goals Define gross domestic product. Describe economic measures of labor. Identify economic indicators for
consumer spending.
Introduction to Business© Thomson South-Western
Chapter 2
Slide 3
Key Terms
Gross Domestic Product (GDP) GDP per capita unemployment rate productivity personal income retail sales
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Slide 4
GROSS DOMESTIC PRODUCT (GDP) Components of GDP Comparing GDP
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Slide 5
Comparison of GDP in Selected Countries
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Slide 6
>> C H E C K P O I N T
What types of economic activities are not included in GDP?
Introduction to Business© Thomson South-Western
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Slide 7
LABOR ACTIVITIES
Employment Productivity
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Slide 8
>> C H E C K P O I N T
What are ways to increase productivity?
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Slide 9
CONSUMER SPENDING
Personal income Retail sales
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Slide 10
>> C H E C K P O I N T
What are the main sources of personal income?
Introduction to Business© Thomson South-Western
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LESSON 2-2LESSON 2-2
Economic Conditions Change
Goals Describe the four phases of the
business cycle. Explain causes of inflation and
deflation. Identify the importance of interest rates.
Introduction to Business© Thomson South-Western
Chapter 2
Slide 12
Key Terms
business cycle prosperity recession depression
recovery inflation price index deflation
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THE BUSINESS CYCLE
Prosperity Recession Depression Recovery
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Slide 14
>> C H E C K P O I N T
What are the four phases of the business cycle?
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CONSUMER PRICES
Inflation Causes of inflation Measuring inflation Deflation
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>> C H E C K P O I N T
What are the main causes of inflation?
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INTEREST RATES
Types of interest rates Changing interest rates
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Slide 18
>> C H E C K P O I N T
How do interest rates affect business activities in our economy?
Introduction to Business© Thomson South-Western
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LESSON 2-3LESSON 2-3
Other Measures of Business Activity
Goals Discuss investment activities that
promote economic growth. Explain borrowing activities by
government, business, and consumers. Describe future concerns of economic
growth.
Introduction to Business© Thomson South-Western
Chapter 2
Slide 20
Key Terms
capital project stock bond budget surplus budget deficit national debt
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Slide 21
INVESTMENT ACTIVITIES
Personal savings The stock market The bond market
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>> C H E C K P O I N T
Name some examples of capital projects.
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BORROWING
Government debt Business debt Consumer debt
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Slide 24
>> C H E C K P O I N T
What is the cause of a budget deficit?
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FUTURE ECONOMIC CHALLENGES Limited access to health care Need for proper housing for many
people Traffic and crime Unemployment
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Slide 26
>> C H E C K P O I N T
What are future economic concerns for a country’s economy?