1. DO NOW: How do you measure how well you are doing in your classes at LRHS?

2. Activity
Move around the room to find a match to the card handed to you by Mrs. Incardona
When a match is found see Mrs. Incardona if it’s correct go to the black board and tape it (term on one side/definition on an another). If it’s not correct, try to find the match.
When finished we will go over the definitions to make sure they’re correct.

3. What is gross domestic product (GDP)?
Currency value (such as U.S. dollar) of all final goods and services produced within a country in a given period
Total income of a nation
Measure of nation’s economic well-being
Measure of a nation’s economic growth from one period to the next

4. Comparison of GDP in selected countries
Which country has the lowest GDP?
Which country has the highest GDP?
Which country has the lowest GDP per capita?
Which country has the highest GDP per capita?

5. What’s included in GDP? Consumption by households
$ amount of goods and services purchased by households
Goods: groceries, clothes, automotives
Services: haircuts, oil changes
Consumption (C) is the expenditure by households on consumption goods and services. It includes durables (goods lasting three or more years), nondurables, and services.

6. What’s included in GDP?
Investment by businesses and households
$ amount spent by businesses on new capital goods (goods that are used in producing other goods, rather than being bought by consumers)
Fixed assets for production (new machines, equipment, tools)
New homes
Inventories
Investment (I) is the purchase of new capital goods (tools, instruments, machines, buildings, and other constructions) and additions to inventories. In other words, it is spending by firms, including final purchases on machinery, equipment and tools, all construction of new houses, buildings, and apartments, and additions to inventory.

7. What’s included in GDP?
Government expenditures by local, state, and federal government
$ amount spent on goods and services by all levels of government
Example: roads and schools
Other examples of Government expenditures?
Government purchases of goods and services (G) are purchases of goods and services by all levels of government. It excludes transfer payments (welfare spending and unemployment compensation) because those payments do not represent new products or services; rather, they are transfers of income.

8. What’s included in GDP? Net exports
Value of a country’s exports to other nations, less its imports from other nations
Exports – foreign spending on American goods and services
Imports – American spending on foreign goods
What is an example of an imported and exported item?
Net exports of goods and services (X-IM or NX) is the value of exports of goods and services minus the value of imports of goods and services. In the United States, it is the value by which American spending on foreign goods and services exceeds foreign spending on American goods and services.

9. What’s included in GDP?
GDP = Consumption + Investment + Government spending + Net exports
GDP is equal to all of the spending by households, businesses, government, and the international sector on final goods. It is also the dollar value of the nation’s goods and services produced in a given period within the nation’s borders.

10. What are the components of GDP?
Personal Consumption Expenditures
(C)
Investment
(I)
Government
(G)
Net Exports
(NX)
Exports
Imports
Expenditures on final goods and services are divided into four types: consumption, investment, government purchases, and net exports (exports – imports) of goods and services.
GDP = C + I + G + NX

11. Labor Activities & Consumer Spending
Go to Page in your textbook
Page assessment

12. Inflation – A general Rise in the price level of an economy.
Consumption – Dollar value of all goods and services purchased by households.
Aggregate Demand – The amount of goods and services ALL buyers in the economy are willing/able to buy at all the possible price levels.
Aggregate Supply – The amount of goods and services ALL companies are willing to produce at ALL possible levels.

13. Define the following:
Unemployment rate – define it, then research on the internet the current unemployment rate for NJ
Productivity – define it, then research on the internet the productivity rate for second quarter of 2015.
Personal Income – define then look up what is personal income for NJ and Florida
Retail sales – define then look up automotive retail sales for August

14. GDP Per capita – Currency value of all final goods and services produced within a country’s borders divided by the population.
Standard of living – Intangible concept that seeks to represent a country’s level of economy prosperity. Correlates with GDP growth.

15. Homework
Find a recent article that relates to what you learned about today. Summarize the article, make sure you include the link of the article if found on line.