Free 11th Grade Macroeconomics - Gdp Lesson Plan

Topic: Measures of Economic Activity - Calculating GDP; Calculating nominal GDP using expenditure apporach; Calculating GNP/GNI; Calculating real GDP using a price index deflator; Understanding the difference between nominal and real GDP; Understanding how the GDP deflator is derived; Unsing the GDP deflator to calculate real GDP

Objectives & Outcomes

• Students will be able to calculate nominal GDP using the expenditure apporach.
• Students will be able to calculate GNP/GNI.
• Students will be able to calculate real GDP using a price index deflator.
• Students will be able to understand the difference between nominal and real GDP.
• Students will be able to understand how the GDP deflator is derived.
• Students will be able to use the GDP deflator to calculate real GDP.

Materials:

• Calculator
• Handout on GDP calculations
• GDP data (either from the internet or from a textbook)

Warm-Up

• Have students work in pairs to complete the following prompt:
• According to the GDP concept, total economic activity in a country can be measured by ____.
• Discuss the answers as a class.

Direct Instruction

• Start by introducing the concept of GDP, and its importance in measuring economic activity.
• Discuss the two different approaches to calculating GDP: the expenditure approach and the income approach.
• Explain the differences between nominal GDP and real GDP, and the importance of using a price index deflator to calculate real GDP.
• Demonstrate how to use the GDP deflator to calculate real GDP.

Guided Practice

• Provide students with handouts containing information about different countries' GDP and the corresponding price index deflators.
• Have students work in pairs to calculate the real GDP for each country using the price index deflator.
• Have pairs share their results and discuss the differences in real GDP across countries.
• Encourage students to hypothesize about the reasons behind these differences.

Independent Practice

• Have students work in small groups to research the price index deflators for a selection of goods and services in their own country.
• Have each group create a poster or presentation that shows the price index deflator for different goods and services and explains the -methodology used to derive the deflator.
• Have each group present their findings to the class.

Closure

• Review the four steps for calculating real GDP using a price index deflator.
• Ask students to explain the difference between nominal and real GDP and how the GDP deflator is used to calculate real GDP.

Assessment

• Have students turn in their completed worksheets as an assessment of their understanding of calculating real GDP using a price index deflator.
• Have students turn in the completed calculation of real GDP for the US economy from 2005-2015 and discuss their answers as a form of assessment.
• Have students complete a short quiz reviewing the four steps for calculating real GDP and the difference between nominal and real GDP using a price index deflator.