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The The Macroeconomic Macroeconomic
PerspectivePerspectiveUnit 3, Lesson 1Unit 3, Lesson 1
The Macroeconomic PerspectiveThe Macroeconomic Perspective
Macroeconomic Perspective: Looking at the overall aspects and workings of a national economy.
What are the major goals the national economy?
• Stable prices• Low unemployment • Economic growth
The Macroeconomic Perspective
Key Measures of the National Economy
• Gross Domestic Product (GDP)• Unemployment Rate• Consumer Price Index (CPI)
Macroeconomic Challenges
Issues that arise in a national economy affect many communities across the country
What challenges do we face in today’s economy? Home foreclosures, banking crisis, high
unemployment, high personal and national debt
How is our economy doing?How is our economy doing?
Some Statistical Measurements: This year employment increased by 1,800,000 jobs as
of Sept. 2011 but U.S. unemployment rate is around 9.1% (Sept. 2011).
MI unemployment rate 11.1% Consumer spending has increased by 11% from one
year ago (Oct. 17, 2011). Economic growth (GDP) increased 2.5%. (Oct. 23,
2011)
What do these statistics reveal about our economy? Do you expect that production will grow, remain the
unchanged, or decline in the next year?
Why does Macroeconomics Why does Macroeconomics matter?matter? Businesses: Understanding macroeconomic trends helps
businesses be responsive to the environment in which they compete
Households/ Consumers: Understanding macroeconomic trends helps people make informed decisions about personal finance and voting. Is this a good time to buy a car? Refinance your home? Change to a new job? Go to college? How candidates and their policies affect my economic
well-being
But how is the economy really doing?
Total unemployment 17.5%
Continued…
Hourly earnings the same for 50 years
Continued… Economists would agree that income equality is a good
thing.
Continued…
Think of this like pieces of pizza
Continued…
Where does your family fit in here?
Continued…
Does the “American Dream” still exist?
No wonder people are angry
