Beginning Activities Title today’s lesson: Measuring the Nation’s Output Notes Activity: Measures of National Income 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

Measuring the Nation’s Output Chapter & Section

Notes Activity Pages Measures of National Income – Gross National Product – Net National Product – National Income – Personal Income – Disposable Personal Income

GDP – The Measure of National Output Gross Domestic Product – the dollar amount of all final goods and services produced within a country in a year Computing GDP – Multiply all of the final goods and services produced in a 12-month period by their prices – Add them up to get the total dollar value of production

Excluded from GDP – Intermediate products – products used to make other products – Secondhand sales – Nonmarket transactions (underground economy) Limitations of GDP – Tells us nothing about composition of output (what’s being made) – Tells us little about the quality of life

Economic Sectors and Circular Flows Consumer Sector (C) – household income Investment Sector (I) – productive sector Government Sector (G) – taxes and contributions Foreign Sector (X-M) – difference between goods sold and bought abroad

Output-Expenditure Model GDP = C + I + G + (X – M) Used to explain and analyze the economy’s performance

Ending Activity Map Activity: Highest GDPs Make sure the floor is clean Connect to our objectives: How does this prepare you for life and the future?