Bellringer1. Calculate the GDP for Portugal in

2008. (in millions)

Consumers spent: $90,000

Investment: $40,000

Exported $50,000

Imports $90,000

Government: $10,000

2. What is their GDP per capita?

3. If the US GDP per capita is $49,000

and Mexico’s is $9,700, is Portugal

rich or poor? (explain)

Portugal: 10 million people

Currency: Euro

Portugal

The Business Cycle

• Changes in GDP over time

recovery

prosperity

Recession

• 6 + months of negative GDP growth

• 3 Causes?

• 6+ months of positive GDP growth

• 3 causes?

Prosperity

GDP Change Assignment1. Which part of the GDP formula is the largest? (It’s the part

you are the most involved in)

2. How many recessions has Argentina had since 1900?

3. When was their worst one?

4. Why are recessions good for selling inferior goods?

5. Calculate US GDP 2010

Consumers: $12 trillion

Investment: $1.5 trillion

Government: $2 trillion

Exports: $1 trillion

Imports: $2 trillion

6. Describe US

Trade (net….?)