Bellringer1. 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 >>>>>>>>>>>

Why Unemployment?

• You may be unemployed

• Problem for society

• Can cause recessions

Think back to US history

• Why was the “Great Depression” so bad?

• How did the government try to fix it?

Economic Event’s Name?Effect on GDP?

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

•GDP per capita?

Labor Force

• All 16 years and older who can work

• “LF”

Not included in Labor Force

• Children

• Fulltime Students

• Military

• Physically Disabled

• Mentally Disabled• Prisoners (over 2 million right now!)

• Discouraged Workers

• Retirees

Unemployment Rate Calculation

• Simple calculation

• # unemployed in labor force• # in labor force

Always a %Higher the % the worse it is for the

country

100

USA Unemployment

Probability of unemployment

Arizona’s Unemployment Rate

Source: US BLS

GDP Assignment1. Draw a picture of each of the 4 parts of the GDP formula

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 2010Consumers: $12 trillion

Investment: $1.45 trillion

Government: $2 trillion

Exports: $1 trillion

Imports: $2.05 trillion

7. Describe US

Trade (net….?)