Monday December 10

New Concepts:

• Introduce Macro Economics
• List the five main economic objectives (goals)
• Describe and illustrate the circular flow of income model of the economy
• Measuring National Income (GDP)
• Circular flow of income
• Methods of Measurement
• Closed (Basic model)
• Open (Includes injections and leakages)

Resources:

GDP Equation (Expenditure Method)  Y = C+I+G+(X-M)

• C-Consumer Spending
• I-Business Investment
• G-Government Spending
• (X-M) Net exports

• Power Point - GDP (National Income)

• Video - Description of GDP

• Khan Academy Video  GDP (Measuring National Income)

• Circular flow model with injections and leakages included

Homework:

• Read Chapter 13 - The level of overall economic activity Pages 155 - 169