1. Macroeconomics

2. Motivation
Pass out the cards and have the students identify the economic goal they would like the government to deal with.

3. Objective The students will learn the three macroeconomic goals.
Students will know the characteristics of the the Gross National Product (GNP).
Students will distinguish the GNP from the GDP.

4. Objective (Continued)
Students will know the limitations of the GDP.
Students will know the characteristics of the business cycle.

5. 3 Macroeconomic Goals

6. Gross National Product
The total dollar value of all final goods and services produced in the economy during one year’s time.

7. Business Cycle

8. Business Cycle

9. Gross Domestic Product
The total dollar value of all final goods and services produced by resources in the United States (regardless of who owns them) during one year’s time.

10. Composition of the GNP
1. Consumer goods (Personal Consumption) 60%

11. 2.Physical Investment (Business) 20%
Composition of the GNP
2.Physical Investment (Business) 20%

12. Composition of the GNP
3) Governmental Purchases 20%

13. Composition of the GNP
4) Foreign Investment ?%

14. Limitations of the GDP
Read your textbook pages

15. Limitations of the GDP
1. GDP Doesn’t Consider the Kinds of Items Produced.

16. Limitations of the GDP
2) GDP Doesn’t Measure Amount Produced Per Person.

17. Limitations of the GDP
3) GDP Doesn’t Measure How Goods are Distributed.

18. Limitations of the GDP
4) GDP Doesn’t Allow for Changing Price Levels.

19. Limitations of the GDP
5. GDP Doesn’t Include Unpaid House Work.

20. Limitations of the GDP
6. GDP Doesn’t Include Barter.

21. Limitations of the GDP
7. GDP Doesn’t Measure Quality of Items.

22. Limitations of the GDP
8. GDP Doesn’t Recognize the Value of Leisure Time.

23. Closure
Handout 12.1 The Gross National Product and 15.2 The Case Against Economic Growth