Standard VI.B.3,5

3. Differentiating between different measures of GDP.
5. Calculating GDP Deflator.

Introduction/Possible Activities:

GDP helps to measure all of the stuff that is produced in a country in a year. It helps to use this number to compare two different countries and how productive each one is. For example, America's GDP is around $15 trillion, the highest in the world, while many other countries lag far behind. This proves that America is the most productive country in the world. Some of you might be asking, well If all things I buy say "Made in China," how is America the most productive country in the world? However, the measurement of GDP cannot paint the whole picture of how the American economy is performing. Other numbers in addition to GDP can help paint a more clear picture as to how well an economy is actually performing. How can GDP numbers be made more usable or tell more about the strength of an economy?

-How do we calculate GDP deflator, GDP per capita, and GDP growth rate?
Learning Activities:

1. Watch the Video on GDP Deflator.

2. Watch the Video on other GDP calculations

Complete the bottom portion of the GDP Review below.

Remediation Checklist:
  • Re-read text.