1. Economic Productivity
Essential Questions: Why is GDP an important measure of the health of an economy? How do GDP and GNP differ?

2. Video Clip Take notes on the following sections of the textbook:
GDP- The Measure of National Output (pp )
Computing GDP (p. 342)
Some Things Are Excluded (p. 343)
Limitations of GDP (p. 344)
An Overall Measure of Economic Health (p. 344)
GNP – The Measure of National Income (p. 344)
Disposable Personal Income (p. 346)
Economic Sectors and Circular Flows (p. 346)
Consumer Sector (p. 346)
Investment Sector (pp )
Government Sector (p. 347)
Foreign Sector (p. 348)
The Output-Expenditure Model (p. 348)
Real vs. Current GDP (p. 353)
Measuring Growth (p. 363)
Video Clip

3. Handout #1
“Related Links” → “Interactive Tables” → “Begin Using the Data” → “Section 1: Domestic Product and Income” → “Table ”
Handout #2
“Related Files” → “Full Release & Tables”

4. “Related Files” → “Release Highlights”
Handout #1
“Related Links” → “Interactive Tables” → “Begin Using the Data” → “Section 1: Domestic Product and Income” → “Table ”
Handout #2
“Related Files” → “Full Release & Tables”
“Related Files” → “Release Highlights”

5. http://www. gpo. gov/fdsys/browse/collection. action
→ select the current year → select the current month → Total Output, Income, and Spending → Gross Domestic Product

6. Per Capita GDP – World Rankings

7. The Circular Flow of Economic Activity
Businesses
How are goods, services, and money exchanged between businesses, governments and households in the U.S. economy?
Households
Governments

8. 5. – What do businesses provide to governments?
6. – What do governments provide to business?
– What do households provide to business?
2. – What do businesses provide to households?
3. – What do households provide to governments?
4. – What do governments provide to households?

9. Money (buying products), Workers (employees)
Money (jobs/employment), Products (goods/services)

10. Money (taxes), Workers (employees)
Money (jobs/employment), Services (roads, schools, police/protection)

11. Money (taxes), Products/work (contractors)
Money (contracts to perform work), Services (infrastructure, police, etc.)

12. Economic Productivity Finish the statements below:
Summarizer:
Finish the statements below:
GDP is a good measure of economic health because…
GDP is calculated by adding…
GDP can be distorted by inflation because…
GDP can be distorted by population growth because…
GDP doesn’t give an entirely accurate picture of all economic activity because…
GDP differs from GNP because…