Intro to Macro 2.1

The Level of Overall Economic Activity

Goals for this section:

  1. List the 5 Main Macroeconomic goals

  2. Distinguish between the output approach, the income approach and the expenditure approach to measure national income.

  3. Calculate nominal GDP from national income data using the expenditure approach.

  4. Calculate GNI from data

  5. Calculate real GDP and real GNI using a price deflator

  6. Calculate real GDP and real GNI per capita

  7. Evaluate the uses of national income statistics

  8. Evaluate the appropriateness of using GDP or GNI statistics to measure economic well-being.

  9. Explain and illustrate the business cycle and its phases

  10. Illustrate short-term fluctuations and long-term growth trends in the business cycle.

  11. Explain alternative measures of well being

  12. Distinguish between a decrease in GDP and a decrease in GDP growth.

5 Main Macroeconomic goals:

  • A steady rate of increase of national income

  • A low level of unemployment

  • A low and stable rate of inflation

  • A sustainable level of government debt

  • An equitable distribution of income

The Level of Overall Economic Activity (my presentation)

China's Economy: Why is it misleading? How is China's economy measured?

Super dorky video about GDP:

GDP Review from Mr. Clifford:

Nominal vs. Real GDP by Mr. Clifford:

Econ Plus Dal: Measurement of Growth Review:

Activity: Is GDP the best measurement of the well being of a country? Read this article and answer the corresponding questions

What does GDP really tell us about Economic Growth?

Why GDP is NOT a good measure of a country's well-being

Is there a better measure of well being?

More Articles about the problems with using GDP as a measure of a country's progress. Choose one to read and discuss in a group of 2-3. Each of you will choose a different article.

Beyond GDP....

Can Economic Progress Be Measured and Evaluated?

Alternate to GDP

Has GDP Outgrown its Use?

How Countries Calculate their GDP

The Invention of the 'Economy'

The Rise and Fall of the GDP

The Trouble with GDP

What Makes Life Worthwhile

Why GDP is an Inappropriate Measure of Economic Health

Discuss!

Optional Review of measuring the economy by Mr. Clifford (approx 20 min)

Review of the Business Cycle:

Econ plus Dal Review of the Business Cycle (Economic Cycle):

The Level of Overall Econ...ty ‎(my presentation)‎.pptx

Practice Exam Questions

Paper 1 part a questions:

  1. Using a diagram of the circular flow of income model, explain three ways that national income can be measured.

  2. Distinguish between GDP, GNI, real GDP and real GNI per capita.

  3. Explain three uses of national income statistics.

  4. Distinguish between the OECD Better Life Index and the Happy Planet Index

  5. Explain the workings of the business cycle.

Part b questions:

  1. Using real-world examples, evaluate the use of GDP figures as a means of comparing countries.

  2. Using real-world examples, evaluate the appropriateness of using GNI statistics to measure economic well being