Introduction
Macroeconomics is the study of the large economy as a whole. It is the study of the big picture. It examines whole economies such as the US economy. How do we know that the economy is doing well is dependent on 3 key ideas that all economies need to succeed.
- Economic growth: an increase in the amount of final goods being produced
- Stable prices (no inflation or deflation)
- low unemployment rates
Task
Your task is to assume the role of an economist for the following 3 countries: The United States, Canada and Mexico. Perform research using the internet to determine the following information for all three countries:
- Gross Domestic Product (describe whether it has increased or decreased)
- Consumer Price index (describe whether it has increased or decreased)
- Unemployment rate (describe whether it has increased or decreased)
Process
Using a google doc or Word create a chart representing the 3 countries and the data for their CPI, GDP and unemployment rate. Compare this data for two years it can be last year's data compared to any other data within the last 10 years. Review the following videos on GDP, inflation and the unemployment.
- https://www.youtube.com/watch?v=Vg4-gMW89E0
- https://www.youtube.com/watch?v=mjJmo5mN5yA
- https://www.youtube.com/watch?v=uPRQnQxsL3E
Evaluation
Based on the information in the introduction describe how you think each of the economies are doing. Is there economic growth? Has inflation taken place? Rank the economies in terms of performance. You might need to research your key terms to ensure that you are on track.
Conclusion
What did you learn about Macroeconomics and the economy in general? How do we know that economy is doing well? What is the difference between economic growth and decline. How can inflation ruin the economy?