1. Bellringer
1. 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 indicators
Brainstorm 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

3. 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

4. Top World Economies

5. Economist handout

7. Parts of GDP
• All consumer spending on
new items within a country in
a certain year, month or
quarter

8. Parts of GDP
• All private investment
within a country in a
certain year, month or
quarter
• IOW: $$$ business spends
• Where do they get it from?

9. Parts of GDP
• All government
spending in a country
in a certain year,
month or quarter
• Examples: education,
military, roads,
healthcare, etc

11. 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

12. 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.

13. Net Importers

14. US GDP history by part

15. GDP
• What economic activity did I leave out?
• 2 ways GDP might be misleading?

16. GDP Calculation
Y=C+I+G+E
where
Y = GDP
C = Consumer Spending
I = Investment
E = Exports - Imports
G = Government Spending

17. United States GDP 2003
Y=C+I+E+G
$$ in Billions
Consumer Spending = $7605
Investment = $1606
Exports = $1021
Imports = $1508
Government Spending = $2017
$7605 + 1606 + (1021-1508) + 2017 = $10,741 (2003)