Congrats to the Bay Area!

1. Congrats to the Bay Area! • The FDA and hundreds of other health professionals have issued McDonalds Corp. a public letter requesting that McDonald’s stop marketing Happy Meals to young children • San Francisco already has a city ordinance regarding minimum health requirements for meals that include toys • We hope that the rest of the country will follow in its footsteps by the year 2016

2. Business CyclesWarm Up #2 • What are the 4 categories of spending that make up our GDP (by expenditure)? • How does the GDP of a country relate to its standard of living?

3. Review • Real GDP- GDP reported in the price levels for the year in which GDP was measured • Nominal GDP- GDP that takes into account inflation and current value of goods

4. GDP vs GNP • Gross Domestic Product- value of all goods produced WITHIN the US • Gross National Product- value of all goods made by US countries

5. Business Cycle • There are 2 phases: • Expansion • New technology • Post-War industry • Recessions • Unemployment • Drop in stocks • Higher interest rates

6. Draw and Label the Business Cycle • The Business Cycle by Khan Academy

7. Growing too fast too quickly can be a bad thing • When the GDP soars at a really fast pace, economists worry about a “bursting bubble” • Slow and steady wins the race

8. Recession and Depression • Recession- when GDP falls for 6 consecutive months • Depression- when GDP falls for over 12 consecutive months

9. Aggregate supply and demand • Aggregate output is real GDP- total amount of goods and services calculating inflation and new census information • Aggregate supply refers to the total amount that all U.S. producers are willing and able to produce • Aggregate demand refers to how people respond to price levels

10. Per capita GDP • Per capita GDP is the GDP per household • Currently $42,000 (roughly) • Best measure of the US Standard of Living

11. Begin Homework • Reteaching Activity 12-2: Business Cycles