Unit 2A: Measuring the Economy: Economic Goals

One of the most important indicators for a macroeconomy is GDP (Gross Domestic Product). This figure, the value of all goods and service produced in a country for a given year, let's government know the health of the economy and whether it is growing or shrinking. Often connected to this measure are two important statistics: unemployment rate and inflation rate. Congress has tasked the federal government with making sure that the overall health of the United States economy is good, and if it is not, it has tools to influence changes to make it so. In this unit we will be introduced to GDP, its components, Unemployment Rate, and the Inflation Rate.

Study Tools

Online Textbook Resources

Unfortunately, due to the age of the textbook, the publisher has removed all online content associated with our textbook. While we will use the book as an important source, the links given therein are no loner functioning. As a result, I will look online for other sources related to the topics in our text. Likewise, I encourage you to let me know of any useful websites that you come across in your studies so that I may add them to the site and share with everyone.

Constructing & Deconstructing GDP: The Income Approach

Using the Income Approach, this powerpoint demonstrates how to create GDP figure using given data and then work back to get other statistics such as NDP, PI, and DI.

Videos

Video Link: Learner.org

• Economics U$A: U.S. Economic Growth

  Nearly 30 minutes, this video examines the GNP, the benefits and shortcomings of its measurement. NOTE: GNP (Gross National Product) is a slightly different measure than GDP. GNP measures the use of foreign and domestic resources differently.

  From the website, This episode documents the GNP's greatest achievements and failures since its introduction in the 1930s.

  To get to this program, in the windown that opens, scroll down to the title "12. U.S. Economic Growth" and click the "VoD" icon on the right.

• Economics U$A: Boom and Bust

  Nearly 30 minutes, this video examines the ups and downs of the US economy through the idea of famous past economists.

  From the website, America's roller-coaster economy is examined in light of the economic theories of Marx, Schumpeter, Keynes, and Say.

  To get to this program, in the windown that opens, scroll down to the title "16. Booms and Busts" and click the "VoD" icon on the right.

• Economics U$A: Inflation

  Nearly 30 minutes, this video discusses the upward spiral of prices and how it relates to economics growth. But what are the benefits and drawbacks of this inflation?

  From the website, This program examines the economic and social costs of the inflationary spiral of the early 1960s and questions whether the problem of inflation has been solved.

  To get to this program, in the windown that opens, scroll down to the title "19. Inflation" and click the "VoD" icon on the right.

Copyright M. Caggia 2012