Civics Today Citizenship, Economics, & You

"Measuring GDP"

Introduction
In this chapter you read about the American economy. By studying economic indicators, the government determines whether the economy is in a period of expansion or recession. Some of the economic indicators are the consumer price index, the unemployment rate, and gross domestic product. In this activity you will take a closer look at how the government measures GDP.

Destination Title: EconEdLink—A Case Study in Gross Domestic Product

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Directions
Start at the EconEdLink Web site.

• In the search window, type GDP.
• Refine the search results by selecting “Lessons” under Resource Type.
• Select the first lesson that appears.
• Read the lesson.

1			In the name GDP, why do you think the terms “gross,” “domestic,” and “product” make sense?
2			What is commonly used to compare our standard of living to other nations?
3			At what rate did real GDP increase or decrease in the most recent quarter?
4			Did unemployment grow or shrink for the same period?
5			Find out the GDP for last year and the rates of change for this year. Enter the rates of change into a spreadsheet. Use this information to create a graph of GDP for the current year.