D.B.

Q ESSAY: Measuring The Economy

*Economic Indicators Glossary:
• Gross Domestic Product (GDP) represents the monetary value of all goods and services produced and
sold within a nation's geographic borders over a specified period of time.
• Inflation is defined as a sustained increase in the general level of prices for goods and services. It is
measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller
percentage of a good or service.
• Unemployment is when a person who is actively searching for employment is unable to find work. It is
measured by the number of unemployed persons divided by the number of people in the labor force.
• Business Cycles: Expansion, Recovery, Contraction: Depression, Trough.

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1) What does this letter reveal about the young woman’s life?
2) During what time-period was this letter written? How do you know?
3) After reading this letter, what details can you share about the health of the American
economy during the Great Depression?
4) What is happening in the picture?
5) What does this picture reveal about Consumer spending and Business during
the 1930’s?
6) Why is GDP important?
7) During which years was the GDP at its lowest and highest?
8) How do these GDP numbers explain what you see in the picture?
9) Based on all this information what point in a business cycle is our country in 1933?
*Types of Unemployment:
a) FRICTIONAL UNEMPLOYMENT: those currently working looking for another job.
b) SEASONAL UNEMPLOYMENT: those who work during certain times of the year.
c) STRUCTURAL UNEMPLOYMENT: a situation where jobs exist but workers looking
for work do not have the necessary skills for these jobs.
d) CYCLICAL UNEMPLOYMENT: rises during a downturn in the business cycle, falls
during the cycles up rise.

10) What is happening in this picture?

11) What does it reveal about jobs during the 1930’s?
12) During which years was unemployment at its highest and lowest?
13) How is Unemployment determined?
14) What type of unemployment would it be if, you were laid off because you were
a mall Santa clause?
 15) How much was it to eat at that restaurant? Today the price would not be the
same, what causes it to go up?
16) What year was the Inflation Rate the lowest and the highest?
17) Based on all this information, at what point in a business cycle, is our country
in 1942?

Directions: Using this packet and past knowledge, complete the following Essay:
Make sure to have paragraphs for introduction, body, and conclusion.
Essay Question: You and your partners are my top reporters. I need you to
report on what indicators proved that there was a contraction{a downturn in
the economy} during the 1930’s. Explain how these measurements show a
lack of growth? Explain the human impact of the Great Depression. Why do
you think economists feel the need to monitor our economy?
Make sure to have paragraphs for the introduction, body(s), and conclusion.
Each Paragraph must be at the minimum 5 sentences.