gdp and economic indicators
TRANSCRIPT
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Bellringer1. If you went to the doctor, what would the doctor
test to see if you were healthy? List as many ways as you can think of.
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Macroeconomic indicatorsBrainstorm from the news
• Gross Domestic Product• Unemployment Rate• Inflation rate• Median income• Housing starts• Currency comparisons• Stock market• Bank holdings• Life expectancy• Population• Leisure time
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Gross Domestic Product• A measure of a final goods of country’s economy in
during a given time (year, month, quarter)• Invented by economist Simon Kuznets in 1937
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Top World Economies
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Economist handout
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Parts of GDP• All consumer spending on
new items within a country in a certain year, month or quarter
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• All private investment within a country in a certain year, month or quarter
• IOW: $$$ business spends• Where do they get it from?
Parts of GDP
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Parts of GDP• All government
spending in a country in a certain year, month or quarter
• Examples: education, military, roads, healthcare, etc
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Parts of GDP
• All net exports from a country in a certain year, month or quarter
• Exports = goods shipped to other countries
• Imports = goods brought into a country from another country
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Net Exporters
• A country or territory whose value of exported goods is higher than its value of imported goods over a given period of time.
• A net exporter is the opposite of a net importer.
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Net Importers
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US GDP history by part
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GDP
• What economic activity did I leave out?
• 2 ways GDP might be misleading?
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GDP Calculation
Y = C + I + G + E
where Y = GDP C = Consumer Spending I = Investment E = Exports - Imports G = Government Spending
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United States GDP 2003
Y = C + I + E + G$$ in BillionsConsumer Spending = $7605Investment = $1606Exports = $1021Imports = $1508Government Spending = $2017$7605 + 1606 + (1021-1508) + 2017 = $10,741 (2003)