GDP 2015.notebook November 22, 2015 Presentation.pdfGDP 2015.notebook 4 November 22, 2015 Jan 108:09...
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GDP 2015.notebook 1 November 22, 2015 Jan 67:31 AM Measuring Economic Activity: Gross Domestic Product What does Gross Domestic Product sound like? Jan 67:34 AM Defining Gross Domestic Product The dollar value of all final goods and services produced within a country's borders in a given year (or time period) Dollar Value: Final Goods and Services: Produced within a country's borders: In a given year (or time period): total selling prices of goods and services products a firm sold to CONSUMERS (no intermediate goods) within the US - even if the producer is foreign-owned Jan. 1 to Dec. 31 - NEW OUTPUT produced that year Jan 67:45 AM NOT COUNTED in Gross Domestic Product (GDP): Leisure Time Household Work Used but Valuable Things Illegal Markets PURELY financial transactions Can't account for environmental degradation No measure of human health Why are these NOT included? Are there problems with not including them? Brainstorm with a partner! Jan 69:31 AM Would the following be included in GDP? What would you need to know if you aren't sure? Jan 83:50 PM What does GDP tell us? GDP gives us an idea of how the US is doing financially. How can we use GDP? 1. Compare to previous years (is there growth?) 2. Compare after policy changes (did the policy work?) 3. Compare to other countries Jan 83:52 PM
Transcript of GDP 2015.notebook November 22, 2015 Presentation.pdfGDP 2015.notebook 4 November 22, 2015 Jan 108:09...
GDP 2015.notebook
1
November 22, 2015
Jan 67:31 AM
Measuring Economic Activity:
Gross Domestic Product
What does Gross Domestic Product sound like?
Jan 67:34 AM
Defining Gross Domestic Product
The dollar value of all final goods and services produced within a country's borders in a given year (or time period)
Dollar Value:
Final Goods and Services:
Produced within a country's borders:
In a given year (or time period):
total selling prices of goods and services
products a firm sold to CONSUMERS (no intermediate goods)
within the US - even if the producer is foreign-owned
Jan. 1 to Dec. 31 - NEW OUTPUT produced that year
Jan 67:45 AM
NOT COUNTED in Gross Domestic Product (GDP):
Leisure TimeHousehold Work
Used but Valuable ThingsIllegal Markets
PURELY financial transactionsCan't account for environmental
degradationNo measure of human health
Why are these NOT included?
Are there problems with not
including them?Brainstorm with a
partner!
Jan 69:31 AM
Would the following be included in GDP? What would you need to know if you aren't sure?
Jan 83:50 PM
What does GDP tell us?GDP gives us an idea of how the US is doing financially.
How can we use GDP?1. Compare to previous years (is there growth?)2. Compare after policy changes (did the policy work?)3. Compare to other countries
Jan 83:52 PM
GDP 2015.notebook
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November 22, 2015
Jan 83:52 PM Jan 109:49 AM
Included or
Excludedin
GDP?
Jan 68:53 AM
Closing:
Socrative Exit Ticket:
Teacher Question: Name two items that would NOT be included in GDP.
Jan 64:49 PM
GDP
Day 2
Jan 64:53 PM
Warm Up:
Go to the online classroom. Go to Unit 5, Macroeconomics.
Pull up the document: All about GDP. Complete the first 4 problems.
Jan 69:11 AM
Think back to the definition of GDP:
The dollar value of all final goods and service produced within a country's borders in a given year (or time period)
GDP is then measured and reported in dollar terms.
GDP 2015.notebook
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November 22, 2015
Jan 68:09 AM
Measuring GDP
Expenditure approach:GDP = C + I + G + NX
C = Consumer goods and services (what we buy)
I = Investment by businesses - inventory, factories andNEW HOME PURCHASES
G = Government Goods and Services- police, roads, schools, military; EXCLUDES TRANSFER PAYMENTS - SOCIAL SECURITY, WELFARE, UNEMPLOYMENT
NX = Net Exports (Exports minus Imports)
Jan 67:57 AM
Which Category of
GDP?
Jan 65:32 PM
GDP is measured in Dollar Value.
1970 - Gallon of Milk - $0.36
2010 - Gallon of Milk - $3.65
Assume that in both years, 4 million gallons of milk were produced. What problem do you see?
An issue in comparing GDP:
Jan 69:15 AM
BECAUSE OF INFLATION (rising prices), we must adjust our data.
NOMINAL GDP: GDP in CURRENT dollars
REAL GDP: GDP in CONSTANT/BASE YEAR prices
Jan 1312:04 PM
Units of Cheese
Price of Cheese
Units of Crackers
Price of Crackers
Nominal GDP Real GDP
2008 100 $1 100 $1
2009 100 $1 150 $2
2010 150 $2 200 $3
Jan 107:42 AM
Prices and Quantities
Price of Hot Dogs
Quantity of Hot Dogs
Price of Hamburgers
Quantity of Hamburgers
$1$2$3
100150200
$2 50$3 100$4 150
Calculating Nominal GDP2008 ($1 per hot dog x 100 hot dogs) + ($2 per hamburger X 50 hamburgers) = $2002009 ($2 per hot dog x 150 hot dogs) + ($3 per hamburger X 100 hamburgers) = $6002010 ($3 per hot dog X 200 hot dogs) + ($4 per hamburger X 150 hamburgers) = $1200
Year
200820092010
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November 22, 2015
Jan 108:09 AM
Calculating Real GDP (base year 2008)2008 ($1 per hot dog X 100 hot dogs) + ($2 per hamburger X 50 hamburgers) = $2002009 ($1 per hot dog X 150 hot dogs) + ($2 per hamburger X 100 hamburgers) = $3502010 ($1 per hot dog X 200 hot dogs) + ($2 per hamburger X 150 hamburgers) = $500
Calculating the Real GDP Deflator
2008 ($200 / $200) X 100 = 100
2009 ($600/$350 ) X 100 = 171
2010 ($1,200 / $500) X 100 = 240
Jan 108:19 AM
Determine economic growth between 2008 and 2009
Real GDP 2008: $200
Real GDP 2009: $350
To determine economic growth:
New Real GDP - Old Real GDP
Old Real GDPX 100 = economic growth
Jan 108:29 AM
Determine economic growth between the years 2009 and 2010:
Real GDP (base year 2008) for 2009: $350
Real GDP (base year 2008) for 2010: $500
Jan 108:29 AM
Closing:
Socrative Exit Ticket
Teacher Question: What is the formula for the expenditure approach to GDP?
Jan 114:44 PM
Warm UP:If I wanted to calcuate economic growth from 2007 to 2008 which data would I use? Why?
Real GDP 2007 $10 million
Nominal GDP 2008 $14 million
Real GDP 2008 $12 million
Jan 123:17 PM
Socrative Assessment
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GDP 2015.notebook
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November 22, 2015
Jan 123:18 PM
GDP tiered practice
Jan 1312:04 PM
Units of Widgets
Price of Widgets
Units of Thneeds
Price of Thneeds
Nominal GDP Real GDP
2008 100 $1 100 $1
2009 100 $1 150 $2
2010 150 $2 200 $3
Warm UP:
1. Calculate nominal GDP for each year.2. Calculate real GDP for each year using 2008 as the base year.
Jan 132:25 PM
Real GDP in Mordor
Real GDP 2011 $4000Real GDP 2012 $5000
By what percent did Mordor's economy grow?
Jan 132:27 PM
To determine economic growth:
New Real GDP - Old Real GDP
Old Real GDPX 100 = economic growth
Jan 132:28 PM
The Shire's GDP
Real GDP 2012 $5000Real GDP 2013 $6000
Jan 132:28 PM
Rohan's GDP
2007 Real GDP - $40002008 Real GDP - $2000
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November 22, 2015
Jan 132:29 PM
Per Capita GDP
- Real GDP divided by a country's population (real GDP per capita)
Jan 132:31 PM
1 United States 16,768,100
2 China 9,181,204
3 Japan 4,898,532
4 Germany 3,730,261
5 France 2,806,432
6 United Kingdom 2,678,455
7 Brazil 2,243,854
8 Italy 2,149,485
9 Russia 2,096,774
10 India 1,937,797
1 Qatar 145,894
2 Luxembourg 90,333
3 Singapore 78,762
4 Brunei 73,823
5 Kuwait 70,785
6 Norway 64,363
7 United Arab Emirates63,181
8 San Marino[6][7]62,7669 Switzerland 53,977
10 United States 53,001
Countries by Nominal GDP Countries by per Capita GDP
Data from United Nations (2013)
Jan 69:09 AM
Analyzing GDP and
Economic Growth
Jan 69:25 AM
GDP..... So what?
Jan 69:26 AM
Per Capita GDP
Jan 69:34 AM
Human Poverty
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November 22, 2015
Jan 69:34 AM
Undernourishment
Jan 69:34 AM
Underweight Children
Jan 69:35 AM
Poor Sanitation
Jan 69:35 AM
Secondary Education Spending
Jan 69:36 AM
Public Health Spending
Jan 69:36 AM
Physicians Working
GDP 2015.notebook
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November 22, 2015
Jan 69:36 AM
Malaria Cases
Jan 69:37 AM
Mortality 1-4 Year Olds
Jan 69:37 AM
Internet Users
Jan 69:25 AM
GDP..... So what?Now that you have viewed the maps, answer this question in your notes in 3-5 sentences.
Jan 127:39 AM Jan 127:38 AM
GDP 2015.notebook
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November 22, 2015
Jan 127:50 AM Jan 127:53 AM
Jan 127:49 AM Jan 69:39 AM
Closing:
Today, our main topic was __________________________________________________________________________________________
This is __________________________________________________________________________________________
It is significant because __________________________________________________________________________________________
Jan 127:53 AM
GDP:Day 3
Jan 128:28 AM
Warm Up:
Reading: Recent GDP reports from the Bureau of Labor and Statistcs
GDP 2015.notebook
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November 22, 2015
Jan 127:54 AM
Describe the long-run trend of real GDP as shown below:
Jan 127:56 AM
Overtime, GDP usually grows.
So how do we explain the SHORT-RUN ups and downs of the business cycle?
Aggregate Demand Model
Aggregate Supply Model
Both of these INFLUENCE GDP or LEVEL OF OUTPUT!
Jan 127:57 AM
Aggregate Demand Curve- shows the quantity of goods and services that households, businesses, government, and customers in other countries want to buy at each price level.
Read the definition: Does it remind you of something?
Price Level average price of all goods and services
Jan 128:00 AM
PriceLevel
Output/ Real GDP
AD
Jan 128:01 AM
What can make Aggregate Demand change? (shift)
- Changes in Consumer spending- Changes in Business Investment spending- Changes in Government Spending- Changes in Net Export Spending
What do you see?
Changes in these factors influence overall levels of income, employment and prices in the economy.
Jan 128:03 AM
Aggregate Demand Practice
Capstone Unit 6, Lesson 38
Activity 1
GDP 2015.notebook
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November 22, 2015
Jan 128:06 AM
Aggregate Supply Curve- Shows the quantity of goods and services that firms
choose to produce and sell at each price level.
Price Level
Real GDP
AS
Jan 128:15 AM
What causes Aggregate Supply to Change? (Shift)
- Changes in prices of inputs- Changes in productivity- Changes in taxes/regulations- Changes in labor supply- Changes in capital goods
Jan 128:16 AM
Aggregate SupplyPractice
Capstone Unit 6Lesson 38Activity 2
Jan 128:17 AM
Putting the Curves Together:
Price Level
Real GDP / Output
AD
AS
Jan 128:21 AM
PL
RealGDP
AS
AD
PL
RealGDP
AS
AD
PL
RealGDP
AS
AD
PL
RealGDP
AS
AD
Option 1:
Real GDP:
Price Level:
Option 2:
Real GDP:
Price Level:
Option 4:
Real GDP:
Price Level:
Option 3:
Real GDP:
Price Level:
Jan 128:24 AM
Aggregate Demand and
Aggregate SupplyPractice
Capstone Unit 6, Lesson 38 Activities 3 and 4
GDP 2015.notebook
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November 22, 2015
Jan 128:26 AM
Closing:
Today our main topics were _______________________
These models are _______________________________________________________________________________________________________________________________________
These models are significant because _______________________________________________________________________________________________________________________________________
Jan 128:07 AM
Jan 114:46 PM
![$102 Billion Foregone GDP in Australia [2008 2015]](https://static.fdocuments.in/doc/165x107/58efdda41a28abff548b45b5/102-billion-foregone-gdp-in-australia-2008-2015.jpg)
