Economic Indictors
Marketing Dynamics
Marketing
Lesson Plan
Performance Objective
Students will understand that gross domestic product, standard of living, consumer price index, and
unemployment figures help measure whether an economy/business is accomplishing its goals.
Specific Objective
• Students can identify economic measurements used to analyse an economy.
• Students can research economic measures that are used in a market economy.
• Students can describe the concept of price stability as an economic measure.
• Students can interpret the measure of consumer spending as an economic indicator.
• Students can examine the impact of a nation’s unemployment rate.
• Students can describe the impact of inflation on business.
• Students can portray the economic impact of interest rate fluctuations.
• Students can explain the concept of business cycles.
• Students can describe the impact that phases of a business cycle have on the economy.
Terms
• Employee Productivity – output per worker hour that is measured over a defined period of time such
as a week, month or year
• Gross Domestic Product (GDP) – a measure of the goods and services produced using the labor and
property located in this country
• Inflation – the general rise in prices over a period of time
• Consumer Price Index (CPI) – measures change in prices for 400 specific consumer goods over a period
of time
• Producer Price Index (PPI) – measures wholesale prices over a period of time
• Business cycle – the recurring cycle of an economy slowing down and then expanding
• Prosperity – a time when economy is flourishing
• Recession – period of economic slowdown that lasts for two periods
• Depression – a period of prolonged recession
• Recovery – increase in overall economic activity
Time
When taught as written, this lesson should take approximately two to three days to teach.
Copyright © Texas Education Agency, 2014. All rights reserved.
Page 1
Preparation
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result
in the elimination of any or all of the TEKS listed.
130.347 (c) Knowledge and Skills
(16) The student knows that gross domestic product, standard of living, consumer price index, and
unemployment figures help measure whether an economy/business is accomplishing its goals. The
student is expected to:
(A) identify economic measurements used to analyze an economy;
(B) research how economic measures are used in a market economy;
(D) interpret the measure of consumer spending as an economic indicator;
(E) examine the impact of a nation's unemployment rates;
(G) illustrate unemployment and inflation tradeoffs;
(I) determine the impact of business cycles on business activities; and
Interdisciplinary Correlations:
English-English I
110.31(b) Knowledge and Skills
(1) Reading/Vocabulary Development. Students understand new vocabulary and use it when reading
and writing.
(11) Reading/Comprehension of informational text/procedural texts. Students understand how to
glean and use information in procedural texts and documents.
Math-Algebra I
111.32(b) Knowledge and Skills
(1) Foundations for functions. The student understands that a function represents a dependence one
quantity on another and can be described in a variety of ways. The student it expected to:
(E) Interpret and make decisions, predictions, and critical judgments from functional
relationships.
Occupational Correlation (O*Net - http://www.onetonline.org/)
Job Title: Financial Analysts
O*Net Number: 13-2051.00
Reported Job Titles: Securities Analyst, Investment Analyst, Equity Research Analyst, Credit Products Officer,
Operational Risk Analyst, Planning Analyst, Research Analyst, Real Estate Analyst
Tasks: Draw charts and graphs, using computer spreadsheets, to illustrate technical reports. Inform
investment decisions by analyzing financial information to forecast business, industry, or economic conditions.
Interpret data on price, yield, stability, future investment-risk trends, economic influences, and other factors
affecting investment programs. Monitor fundamental economic, industrial, and corporate developments by
analyzing information from financial publications and services, investment banking firms, government
agencies, trade publications, company sources, or personal interviews.
Copyright © Texas Education Agency, 2014. All rights reserved.
Page 2
Soft Skills: Active Listening, Reading Comprehension, Critical Thinking, Speaking
Accommodations for Learning Differences
It is important that lessons accommodate the needs of every learner. These lessons may be modified to
accommodate your students with learning differences by referring to the files found on the Special
Populations page of this website (cte.unt.edu).
Preparation
• Review and familiarize yourself with the terminology, website links, and digital presentations.
• Teacher will have assignments and website information ready to distribute to students.
Instructional Aids
• Textbook
• Display for digital presentation
• Websites for assignments and class discussion
Introduction
Learner Introduction
The main purposes of this lesson are to help students understand:
• How the economy is measured
• How consumers spending affects the economy
• The impact of unemployment on the economy
• How price stability is an economic measure
• The impact of business cycles on business activities.
ASK: Ask students how well they thing the economy is doing right now?
SAY: Explain that how many people are looking for work and how much the price of gasoline is are indicators
of how well the economy is doing.
ASK: Ask what other things they think might tell us how well the economy is doing?
SAY: Explain that besides the unemployment rate other indicators are how much more it costs to purchase
products such as cars and refrigerators.
ASK: Ask if they think the economy will always be in its current state?
SAY: Explain that the economy goes through cycles which are periods of expansion and then some periods of
recession.
Copyright © Texas Education Agency, 2014. All rights reserved.
Page 3
Outline
MI
Outline
I. Economic Indicators
A. Employee productivity
1. Output per worker hour that is
measured over a defined period of
time such as a week, month or
year.
2. Increased through:
a. Technology
b. New equipment
c. Facilities
d. Reducing workforce
e. Increasing workforce
responsibility
G. Gross Domestic Product (GDP)
1. Measure of the goods and
services produced using the labor
and property located in this
country.
2. Many other factors are
measured against GDP such as the
debt that the government carries.
H. Inflation Rate
1. The general rise in prices over a
period of time.
2. Low inflation
3. High inflation
4. Controlling inflation
a. Consumer Price Index (CPI)
b. Producer price index (PPI)
D. Unemployment Rate
1. Increase Unemployment rates
a. Indicator of an economic
slowdown
2. Decrease Unemployment rate
a. Greater chance of an
economic expansion
b. Increase Spending
c. More Money in Taxes
Instructor Notes
Being able to determine the
health of an economy is
essential for business people.
Factors such as employee
productivity, GDP, inflation
rate, unemployment, CPI and
PPI tell us if our economy is
growing or contracting.
The more industrialized the
country, the more productive
their workforce.
The GDP is reported quarterly
and is not only used to
measure if the economy is
growing, but it is also used a
measure for other factors.
A high inflation rate is not
good for the economy as
people cannot afford as much
as they could using the same
dollars, so spending decreases.
A low inflation rate is not good
either because then goods are
not worth as much as they
once were. The government
can take steps to control
inflation by raising and
lowering the interest rate.
Unemployment rate is
published monthly by the
government. A high
unemployment rate means
that more people are out of
work and therefore there is
reduced spending.
Copyright © Texas Education Agency, 2014. All rights reserved.
Page 4
II. Business Cycles
A. The recurring cycle of an economy
slowing down and then expanding
is known as the business cycle.
B. Prosperity
1. Low unemployment
2. Low inflation
3. Economic growth
4. Stable economy
C. Recession Rising
1. unemployment
2. Possibly rising inflation
3. Economy begins to contract
(reduced GDP)
D. Depression
1. High unemployment for a
prolonged period of time.
2. Many businesses fail.
3. Economy contracts with
decreasing GDP.
4. When economy cannot go any
lower it is called the trough.
E. Recovery
1. Unemployment begins to lower
2. Economy starts to expand
(higher GDP)
3. More businesses begin to open
4. Demand for goods and services
increases
F. Influences to Business Cycle
1. Government influences
2. Consumers
3. Business
The business cycle is a never
ending cycle. No economy
stays in just one phase of the
cycle. There are natural
corrections that take place and
the economies usually fluctuate
between prosperity, recession
and recovery.
During times of prosperity the
economy is doing well. People
can find jobs, the GDP is
growing, inflation is fairly low
and employee productivity is
up. This is a good time for new
business to start and existing
businesses to expand.
Multiple Intelligences Guide
Existentialist
Interpersonal
Intrapersonal
Kinesthetic/
Bodily
Logical/
Mathematical
Musical/Rhythmic
Naturalist
Copyright © Texas Education Agency, 2014. All rights reserved.
Verbal/Linguistic
Page 5
Visual/Spatial
Application
Guided Practice
Students will create a poster that depicts the business cycle. Each cycle will have the definition of the cycle,
the economic indicators of that cycle and possible things a business can do during that part of the cycle.
Independent Practice
The Global Economy
Students will research the economy in two other countries. They will look at the unemployment rate, the
inflation rate, GDP, the amount of debt that the country carries and any other economic indicators that they
think are relevant. The students will determine what phase of the business cycle that country appears to be
going through. The students will create a digital presentation of this information and present it to the class.
Summary
Review: Have students present their Business Cycle Posters and review vocabulary.
Evaluation
Informal Assessment
Instructor should observe the work ethic of individuals involved in class discussions and the independent
practice activity
Formal Assessment
Students will be evaluated on their Global Economy Presentation.
Enrichment
Extension
Students must locate two articles/reports that are related to national data and two articles/reports that are
related to state data.
Once they have located resources, they must summarize the article/report. The student will explain the
implications of the data and how it affects business. From the information that was collected, then they will
analyze our economy’s present status. The student must give reasons for their findings.
Possible web sites:
www.economicindicators.gov
http://www.gpoaccess.gov/indicators/index.html
http://www.whitehouse.gov/fsbr/esbr.html
http://www.census.gov/cgi-bin/briefroom/BriefRm
Copyright © Texas Education Agency, 2014. All rights reserved.
Page 6
Economic Indictors
Marketing Dynamics
Marketing
Independent Practice
The Global Economy Presentation
Directions: Select two countries for the Global Economy Presentation. Gather the data to
complete the table below. Compile data into a digital presentation with comparison graphs.
Country 1:
Country 2:
Unemployment Rate
Inflation Rate
GDP
Country’s Debt
Other Economic Indicators
Current Business Cycle
Phase
Copyright © Texas Education Agency, 2014. All rights reserved.
Page 7
Economic Indictors
Marketing Dynamics
Marketing
The Global Economy Presentation Rubric
CATEGORY
Presentation
Attractiveness
20
Well-rehearsed with
smooth delivery
that holds audience
attention.
15
Rehearsed with
fairly smooth
delivery that holds
audience attention
most of the time.
Makes excellent use Makes good use of
of font, color,
font, color,
graphics, effects,
graphics, effects,
etc. to enhance the etc. to enhance the
presentation.
presentation.
Content
Covers topic indepth with details
and examples.
Subject knowledge
is excellent.
Includes essential
knowledge about
the topic. Subject
knowledge appears
to be good.
Organization
Content is well
organized using
headings or
bulleted lists to
group related
material.
Product shows a
large amount of
original thought.
Ideas are creative
and inventive.
Uses headings or
bulleted lists but
the overall
organization of
topics appears
flawed.
Product shows
some original
thought. Work
shows new ideas
and insights.
Originality
10
Delivery not
smooth, but able to
maintain interest of
the audience most
of the time.
Makes use of font,
color, graphics,
effects, etc. but
occasionally these
distract from the
presentation
content.
Includes essential
information about
the topic but there
are 1-2 factual
errors.
5
Delivery not smooth
and audience
attention often lost.
Content is logically
organized for the
most part.
There was no clear
or logical
organizational
structure; just lots
of facts.
Uses other people's
ideas (giving them
credit), but there is
little evidence of
original thinking.
Uses other people's
ideas, but does not
give them credit.
Total Points Earned _______
Copyright © Texas Education Agency, 2014. All rights reserved.
Page 8
Use of font, color,
graphics, effects
etc. but these often
distract from the
presentation
content.
Content is minimal
OR there are
several factual
errors.