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Anyone have extra credit packets completed? Now or never.

What will we learn today?What will we learn today?12.4.1 Labor unions, procedures, benefits for their members, effects of unionizations, the minimum wages, and unemployment insurance.12.4.4 Explain the effects of international mobility of capital and labor on the U.S. economy.12.5.2 Significance of unemployment rate, new jobs created monthly, inflation and deflation, and rate of economic growth.

Unit: Hectic JanuaryUnit: Hectic JanuaryDay 1Day 1

On your calendar or planner, add or highlight the following information:

January 14: Econ Song Due / Presentations (video highly suggested)January 19: No more extra creditJanuary 21: Finals Review Day 1January 25: Finals Review Day 2January 27: FINAL

Assignment __: Super Notes #1

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Microeconomics vs. Macroeconomics

Micro = small

(like personal

finance, jobs, etc.)

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Macro = big, huge, country or world wide

Today we’re going to talk about macroeconomics.

Gross Domestic Product (GDP)One of the most important measures

of “how strong” a country is economically is GDP.

GDP is the dollar value of all final goods and services produced within a country's borders in a given year.

The US has the world’s strongest (highest) GDP.

Example: Cars built inside the United States would count towards our GDP.

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Business CyclesA business cycle is a period of

macroeconomic expansion (good times!) followed by a period of macroeconomic contraction (bad times).

Business cycles last an average of 4 years, but they can be shorter or longer.

Down periods are normal, but you want to look out for recessions and depressions.

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Three things that affect the business cycle:1.Interest rates2.External events3.Business investment levels

The Business Cycle

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The Great Depression

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The Great Depression during the 1930s was the most significant economic downturn in the history of industrial capitalism.

UnemploymentNo matter how strong an economy

is, some people will always be unemployed.

In a great economy, unemployment will still be at 4-6%. That’s considered awesome.

Today’s unemployment rate: 10%

nationwide. 12% in CA.

During the Great Depression: 25%

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Seasonal and Structural Unemployment

Seasonal unemployment: people lose their jobs because of harvest schedules, or industries slow down or shut down.

Structural unemployment: people lose their job because their skills do not match the jobs available

Today in the US, there are much more service jobs and much less manufacturing jobs (outsourcing).

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UnderemploymentUnderemployment is when someone is

working at a job for which they are overqualified, or working part-time when they would rather be working full-time.

If you have a job right now, you might feel underemployed.

A lot of Americans who were laid off from their jobs this past year have taken crappy work. They aren’t reported in the unemployed statistics, but they are underemployed.

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Take out your clickers

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1. Products that would be used in calculating the U.S. GDP include

a. toys manufactured in China at a factory owned by a U.S. company.

b. cars manufactured in Tennessee at a factory owned by a Japanese automobile company.

c. plastic manufactured in a factory in Kentucky and sold to toy manufacturers around the world to make plastic toys.

d. cotton cloth manufactured in India and sold to clothes makers in the United States.

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2. The main economic variables that affect business cycles include all of the following EXCEPTa. interest ratesb. personal savings levels

c. external eventsd. business investment

levels

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3. An accurate statement about the Great Depression would be thata. it was a recession that became a

depression because of World War II.b. it was set off because of a sharp and

unexpected rise in interest rates.c. it was the most severe economic downturn

in the history of industrial capitalism.d. its effects and duration would have been

even worse if it weren’t for a strong economy in Japan and Europe at the time.

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4. The lowest point in an economic contraction is calleda. peak.b. recession.c. trough.d. depression.

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5. What is the difference between seasonal unemployment and structural unemployment?a. Seasonal unemployment occurs because of schedules,

whereas structural occurs because people lack skills.b. Seasonal unemployment is rare in a modern society,

whereas structural is not.c. Seasonal unemployment occurs only in the summer,

whereas structural can occur all year round.d. Seasonal unemployment is generally among low-paid

workers, whereas structural is among the highly paid.

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6. When the economy is working properly, what is the unemployment rate?a. 0 to 3 percentb. 4 to 6 percentc. 8 to 10 percentd. 10 to 12 percent

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7. What does it mean when a person is underemployed?a. The person has been working but

now is laid off.b. The person is looking for work in

a special field.c. The person is not making as much

money as they need.d. The person has a job but they are

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8. Current labor market trends includea. an increase in the number of people not

counted in employment statistics.b. an increase in demand for low-skilled

American labor.c. an increase in service jobs accompanied

by a decrease in manufacturing jobs.d. an increase in the number of employed

people worldwide

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The Econ SongTake a information from a chapter of the book and convert

the information into the beat of your favorite song. You are basically re-teaching your assigned chapter, so you

need to be informative. That being said: have fun with this and be comfortable!

The basics:- groups no bigger than two or three (people absent on presentation day affect your grade)

- choose your chapter from a list provided by me - figure out what song you want to use - take a look at your chapter and start turning the info

into notes / song - presentation works best in video form, but I’m willing to

accept live performances - anything inappropriate or use of bad language will result

in an F on the project. Seriously.

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Econ Song: Today’s GoalsTake a look at your assigned chapter.

Write down all the vocabulary from your chapter. You may paraphrase or write in your own words, but you need to write all of it.

Answer questions 1 – 4 on all of the Section Assessment questions. Example: if your chapter has 4 sections, you have 16 questions to answer.

Break up the work amongst your group evenly, then place it all together in a packet.

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