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American Business

American Business. Leslie Lum Bellevue Community College. What is the economy?. Brainstorming. What is a business? What is the context of a business? What environment does it operate in? Form a group Brainstorm what a business is Draw a picture of your ideas Report back to the class.

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American Business

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  1. American Business Leslie Lum Bellevue Community College

  2. What is the economy?

  3. Brainstorming • What is a business? • What is the context of a business? What environment does it operate in? • Form a group • Brainstorm what a business is • Draw a picture of your ideas • Report back to the class

  4. Part of the U.S. economy? • Building a house in New Mexico • Toyota cars assembled in Kentucky • Hair salon in South Dakota • Seattle SuperSonics • Coca Cola plant in China

  5. Who wants to be a millionaire-- What is the size of the US economy? How does it compare to the rest of the world? http://www.worldbank.org/data/quickreference/quickref.html

  6. Measuring the economy Value of goods and services are totaled. GDP adjusted for inflation. Growth is graphed.

  7. The rate of change of GDP • Growth • Period of Expansion • Contraction • Recession

  8. 2004/5 data http://www.whitehouse.gov/fsbr/esbr.html

  9. Inflation • Increase in the price of goods and services • How do we measure it? • Is it good or bad? • What has been the inflation rate for the past 30 years?

  10. Consumer Price Index http://www.bls.gov/cpi/home.htm#tables

  11. Inflation

  12. How does the US compare? http://www.nationmaster.com/graph-T/eco_inf_rat_con_pri

  13. Role of Government • Monetary Policy - Federal Reserve sets interest rates • Fiscal Policy - Spending to stimulate economy

  14. Can the Government afford to help? Deficits or surplus ($billion)

  15. Monetary Policy - How it works

  16. The Whole Picture • The Business Cycle is crucial to business planning

  17. How to avoid finding yourself in the middle of a recession • Important to look ahead • Predict upturns and downturns

  18. Economic indicators • Construction • Manufacturers’ shipments, inventories, orders • Employment • Consumer credit • Wholesale trade • Capacity

  19. Shifts in the American Economy • The American Economy consists of many industries • Not all industries are growing or contracting at the same rate • Where should you be?

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