1. ECONOMIC PERFORMANCE
CHAPTER 13

2. Objective
Understand how Gross Domestic Product (GDP) and Gross National Product (GNP) are two important measures of economic performance

3. Warm up Question: May 9th, 2017
When you work all day at school, how can you tell if you have accomplished much? How can you measure what you have accomplished?

4. Introduction
GDP
What is GDP?
Healthy economy
Economists keep track

5. What is GDP? Production in USA
Dollar value= Quantity of final goods, services, and structures x average prices charged
Not part of GDP: 1. Intermediate products
2. Secondhand sales
3. Nonmarket transactions
4. Illegal activities
Not kinds production grew, not show how people’s live affected, best measurement for economy

7. What is GNP? Measures income
Add payments received from foreign-based companies and investments- payments made to foreign-owned resources inside U.S
Measure of income in governmental statistical records
NIPA
Measures of income: A.NNP
B. NI
C. PI
D. DI

8. Economic Sectors and Circular Flows
Economy divided into sectors: each sector uses income to purchase part of total outcome (circular flow of economic activity)
A. Consumer sector
B. Investment sector
C. Government sector
D. Foreign sector

11. Output-Expenditure Model
GDP= Consumer, Investment, Government, Foreign
Consumer sector: Rent, food, all we buy
Business (investment) sector: Equipment, capital goods
Government: Public works, defense, interest on national debt
Foreign: Value between exports and imports (net exports of goods and services)

12. What have you learned today about GDP and GNP?
Closure Question
What have you learned today about GDP and GNP?
Classwork:
Answer questions 1-6 on page 348

14. Robert Reich Talks at Google
What are the three main ideas of his talk?
2. What did you find interesting about his talk?
3. What three questions would you have for Robert Reich after his talk?