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.

• Scroll down to “Definition of Gross Domestic Product.”
• Read the information under this heading, and look at the charts and graphs on the Web site.

1.			Why is GDP called “gross”? Why is it called “domestic”? Why is it called “product”?
2.			What equation is used to explain GDP?
3.			What is an example of a durable good? A nondurable good?
4.			What is the fastest growing part of consumption spending?
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.