Presentation on theme: "Beginning Activities Title todays lesson: GDP and Changes in the Price Level Beginning Activity: Construct a Price Index Mission Statement: To prepare."— Presentation transcript:
Beginning Activities Title todays lesson: GDP and Changes in the Price Level Beginning Activity: Construct a Price Index Mission Statement: To prepare you for a life of responsible citizenship Daily Expectations: – Come in quietly and get to work immediately – Pay attention and be respectful – No phones – No food or drinks other than water – Do your work – Give AP quality effort 5 bonus points for supplies
Extra Credit 5 points each 6 weeks for bringing supplies: – Paper clips – Pens – Paper – Staples – Tape
GDP and Changes in the Price Level Chapter 13: Economic Performance
Construct a Price Index Use the section on Constructing a Price Index on pages 351-352 to create your own price index. Use at least five items that you choose. If you need help let me know.
Major Price Indices Consumer Price Index reports on 90,000 items in 364 categories in 85 geographical regions in the United States compared to 1982-84. Producer Price Index measures price changes paid by domestic producers for their inputs. Implicit GDP price deflator is an index of average levels of prices for all goods and services in the economy. Its compared quarterly and has a base year of 1996/
Real vs. Current GDP Real GDP takes out inflation. Real GDP = (GDP in current dollars/implicit GDP price deflator) X 100 This allows economists to make comparisons with past years.
Ending Activity Page 355: Profiles in Economics Make sure the floor is clean Connect to our objectives: How does this prepare you for life and the future?