Download GDP Lesson

DO NOW: How do you measure how
well you are doing in your classes
at LRHS?
Activity
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Move around the room to find a match to the card
handed to you by Mrs. Incardona
When a match is found see Mrs. Incardona if it’s
correct go to the black board and tape it (term on
one side/definition on an another). If it’s not correct,
try to find the match.
When finished we will go over the definitions to
make sure they’re correct.
What is gross domestic product (GDP)?
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Currency value (such as U.S. dollar) of all final
goods and services produced within a country in a
given period
Total income of a nation
Measure of nation’s economic well-being
Measure of a nation’s economic growth from one
period to the next
Comparison of GDP in selected countries
Which country has the lowest GDP?
Which country has the highest GDP?
Which country has the lowest GDP per capita?
Which country has the highest GDP per capita?
What’s included in GDP?
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Consumption by households
$
amount of goods and services purchased by
households
 Goods: groceries, clothes, automotives
 Services: haircuts, oil changes
What’s included in GDP?
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Investment by businesses and households
$
amount spent by businesses on new capital goods
(goods that are used in producing other goods, rather
than being bought by consumers)
 Fixed assets for production (new machines, equipment,
tools)
 New homes
 Inventories
What’s included in GDP?
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Government expenditures by local,
state, and federal government
$
amount spent on goods and services by all levels of
government
 Example: roads and schools
Other examples of Government expenditures?
What’s included in GDP?
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Net exports
 Value of a country’s exports to other nations, less its
imports from other nations
 Exports – foreign spending on American goods and
services
 Imports – American spending on foreign goods
What is an example of an imported and exported
item?
What’s included in GDP?
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GDP = Consumption + Investment + Government
spending + Net exports
What are the components of GDP?
GDP
Personal
Consumption
Expenditures
(C)
Investment
(I)
Government
Net Exports
(G)
(NX)
Exports
GDP = C + I + G + NX
Imports
Labor Activities & Consumer Spending
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Go to Page 36-37 in your textbook
Page 37 2-1 assessment
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Inflation – A general Rise in the price level of an
economy.
Consumption – Dollar value of all goods and
services purchased by households.
Aggregate Demand – The amount of goods and
services ALL buyers in the economy are willing/able
to buy at all the possible price levels.
Aggregate Supply – The amount of goods and
services ALL companies are willing to produce at
ALL possible levels.
Define the following:
1. Unemployment rate – define it, then research on
the internet the current unemployment rate for
NJ
2. Productivity – define it, then research on the
internet the productivity rate for second quarter
of 2015.
3. Personal Income – define then look up what is
personal income for NJ and Florida
4. Retail sales – define then look up automotive
retail sales for August
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GDP Per capita – Currency value of all final goods
and services produced within a country’s borders
divided by the population.
Standard of living – Intangible concept that seeks
to represent a country’s level of economy
prosperity. Correlates with GDP growth.
Homework
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Find a recent article that relates to what you
learned about today. Summarize the article, make
sure you include the link of the article if found on
line.