
Try Getting started P139

Name 3 countries you think have high/ low EG
rates
http://en.wikipedia.org/wiki/List_of_countries
_by_real_GDP_growth_rate_(latest_year)





National income = total value of all incomes
in the economy added together
National output = total value of all output or
production in the economy added together
National expenditure = total value of all
spending in the economy added together
National income = National output = National
expenditure
As these grow = Economic Growth which is
one of every government’s Macroeconomic
Objectives (Can you think of others?)


GDP (Gross Domestic Product) =total value of
all goods and services produced in an
economy (domestically). It is the most used
measure of national income
http://www.youtube.com/watch?v=yUiU_xRP
wMc GDP 3:51

We can find out the rate of growth by working out
the % change in the total growth

So if 2010 total GDP = $2.3 billion
2011 total GDP = $2.4 billion
What is the rate of growth?


0.1 / 2.3 * 100 = 4.3%
(remember it’s the change divided by the old figure)
Brainstorm
 Jigsaw; In your group take 1 of the limitations
read it & explain it to the class
 Notes
1. Inflation;  in prices means GDP  when
the amount of G&S are the same. That is,
money (nominal) GDP  where as real GDP
(actual output) hasn’t. We must then adjust
money GDP to reflect inflation, i.e. Money
GDP – inflation rate = real GDP

2.
3.
4.
5.
6.
7.
8.
Population changes; GDP per capita (per
person) = GDP / population
Statistical errors
Home produced goods are not counted, e.g.
painting house, growing own vegetables
The hidden (informal) economy; getting
paid in cash
 GDP doesn’t necessarily mean  living
standards, for e.g.  pollution, income
inequality,  leisure time
Environmental damage
Try Q1 P141




Draw 2 axis; y=GDP, x = Time
In pencil sketch in how you think the graph
would look
Copy Fig. 31.5 P142 and annotate it from the
content on P142
Where do you think Thailand/ The World/
China… are at on the cycle now?
Economic Growth
Benefits
Problems
• Do Q2
• Do exam practice
• Update glossary
•TASK: Each student must choose 1 country. During the Macroeconomics
section of the course you are to find out data relating to that country &
present it to the class.
1. Find out about your country’s GDP; nominal, per capita, and rate of change