Atlanta Public Schools Social Studies Professional Development 10/12/10 Economics Teachers Workshop

Lesson Focus: Calculating GDP, Expenditure Approach SSEMA1: Measurement of Economic Activity (b, c) TLW: Define Gross Domestic Product (GDP) economic growth, inflation, stagflation, and aggregate supply Explain how economic growth is calculated Discuss how economist measure GDP Classify economic events referencing the four macro- economic categories for GDP Predict how these economic events effect GDP

Use the Econ Coach book or Econ study Guide to Define the following terms: Macro-Economics Gross Domestic Product Consumer Price Index Stagflation Aggregate Supply Aggregate Demand

Lesson Focus: Calculating GDP, Expenditure Approach SSEMA1: Measurement of Economic Activity (b, c) Essential Question Does using the expenditure to calculate GDP give best description of the countries health?

1. no; the engine is an intermediate good used in the production of an automobile 2. no; GDP includes only the value of goods produced within the countrys borders SPONGE

Lesson Focus: Calculating GDP, Expenditure Approach

GDP = C + I + G + (X – M) Stands For Consumer Spending Business Investment Government expenditures Exports - Imports GDP Rules: If C, I, or G Increases, GDP Increases If Exports Increase, GDP Increases If Imports Increase, GDP Decreases

Using the expenditure approach to calculate GDP, C+G+I+(x-m), the C stands for a)Spending performed by the government b)Spending performed by Businesses c)Spending performed by Consumers d)Spending on imports and exports Lesson Focus: Calculating GDP, Expenditure Approach

When the My-T-Sharp lawn care business takes out a loan to invest in lawn care equipment, whats being affected?. a)Consumer spending increases and GDP increases. b)Exports increase and GDP decreases. c)Government spending decreases allowing GDP to increase. d)Spending for businesses increases allowing GDP to increase.