Gross Domestic Product: the value of all goods and services made within a nation

    Essential Questions
    1. What does GDP measure?
    2. How do nations use GDP?
    3. Is it an accurate measure of a nation's standard of living? 
    Gross Domestic Product Outline
       1. Circular Flow of Money Model  https://www.youtube.com/watch?v=BvqJiIGT8CE- Circular Flow Movie!
                a.  Product Market
                b.  Factor Market
                c.  Role of Government
                d.  Role of banks
       2. Purposes of Gross Domestic Product
                a.  Measure Standard of Living
                b.  Measurement of National Wealth
                c.  Economic Growth
                d.  The Business Cycle
       3.The two approaches
                a.  Income (WIRP)
                b.  Spending/ Expenditure (C+I+G+ (X-M))
       4.  What is not included  https://www.youtube.com/watch?v=2YxVvhbgV1I&list=PL11ADD17785C9C9A4&index=8- Limits of GDP Video
                a.  intermediate goods
                b.  secondhand sales
                c.  black market items
                d.  foreign produced goods
                e.  financial assets (stocks and bonds)
                f.  Gross National Product (GNP= GDP + foreign investments)
       5.  Real v Nominal GDP (adjusted for inflation and pure dollar amount)
                a.  Aggregate Output
                b.  Base Year
                c.  GDP Per Capita
                d.  GDP Deflator               Real GDP= nominal GDP  X 100
                                                                        price index
    Helpful Links
    https://www.youtube.com/watch?v=Rgr1vRjxzFg- Khan Academy- Gross Domestic Product
    https://www.youtube.com/watch?v=BvqJiIGT8CE- Jacob Clifford Measuring the Economy


Last Modified on February 7, 2020