2.  Try Getting started P139  Name 3 countries you think have high/ low EG rates http://en.wikipedia.org/wiki/List_of_countries _by_real_GDP_growth_rate_(latest_year) http://en.wikipedia.org/wiki/List_of_countries _by_real_GDP_growth_rate_(latest_year)

3.  National income = total value of all incomes in the economy added together  National output = total value of all output or production in the economy added together  National expenditure = total value of all spending in the economy added together  National income = National output = National expenditure  As these grow = Economic Growth which is one of every government’s Macroeconomic Objectives (Can you think of others?)

4.  GDP (Gross Domestic Product) =total value of all goods and services produced in an economy (domestically). It is the most used measure of national income  http://www.youtube.com/watch?v=yUiU_xRP wMc GDP 3:51 http://www.youtube.com/watch?v=yUiU_xRP wMc

5.  We can find out the rate of growth by working out the % change in the total growth  So if 2010 total GDP = $2.3 billion 2011 total GDP = $2.4 billion What is the rate of growth?  0.1 / 2.3 * 100 = 4.3%  (remember it’s the change divided by the old figure)

6.  Brainstorm  Jigsaw; In your group take 1 of the limitations read it & explain it to the class  Notes 1. Inflation;  in prices means GDP  when the amount of G&S are the same. That is, money (nominal) GDP  where as real GDP (actual output) hasn’t. We must then adjust money GDP to reflect inflation, i.e. Money GDP – inflation rate = real GDP

7. 2. Population changes; GDP per capita (per person) = GDP / population 3. Statistical errors 4. Home produced goods are not counted, e.g. painting house, growing own vegetables 5. The hidden (informal) economy; getting paid in cash 6.  GDP doesn’t necessarily mean  living standards, for e.g.  pollution, income inequality,  leisure time 7. Environmental damage 8. Try Q1 P141

8.  Draw 2 axis; y=GDP, x = Time  In pencil sketch in how you think the graph would look  Copy Fig. 31.5 P142 and annotate it from the content on P142  Where do you think Thailand/ The World/ China… are at on the cycle now?

9. Economic Growth BenefitsProblems Do Q2 Do exam practice Update glossary TASK: Each student must choose 1 country. During the Macroeconomics section of the course you are to find out data relating to that country & present it to the class. 1. Find out about your country’s GDP; nominal, per capita, and rate of change