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The Level of Overall Economic Activity
The Level of Overall Economic Activity
Goals for this section:
Goals for this section:
- List the 5 Main Macroeconomic goals
- Distinguish between the output approach, the income approach and the expenditure approach to measure national income.
- Calculate nominal GDP from national income data using the expenditure approach.
- Calculate GNI from data
- Calculate real GDP and real GNI using a price deflator
- Calculate real GDP and real GNI per capita
- Evaluate the uses of national income statistics
- Evaluate the appropriateness of using GDP or GNI statistics to measure economic well-being.
- Explain and illustrate the business cycle and its phases
- Illustrate short-term fluctuations and long-term growth trends in the business cycle.
- Explain alternative measures of well being
- Distinguish between a decrease in GDP and a decrease in GDP growth.
5 Main Macroeconomic goals:
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
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.
Can Economic Progress Be Measured and Evaluated?
How Countries Calculate their GDP
The Invention of the 'Economy'
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):
Practice Exam Questions
Practice Exam Questions
Paper 1 part a questions:
Paper 1 part a questions:
Using a diagram of the circular flow of income model, explain three ways that national income can be measured.
Distinguish between GDP, GNI, real GDP and real GNI per capita.
Explain three uses of national income statistics.
Distinguish between the OECD Better Life Index and the Happy Planet Index
Explain the workings of the business cycle.
Part b questions:
Part b questions:
Using real-world examples, evaluate the use of GDP figures as a means of comparing countries.
Using real-world examples, evaluate the appropriateness of using GNI statistics to measure economic well being
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