Atlanta Public Schools Social Studies

Professional Development10/12/10

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 theproduction of an automobile

2. no; GDP includes only the value of goods producedwithin the country’s borders

SP

ON

GE

Lesson Focus: Calculating GDP,Expenditure Approach

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

Lesson Focus: Calculating GDP,Expenditure Approach

When the My-T-Sharp lawn care business takes out a loan to invest in lawn care equipment, what’s 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.