Economics Name: GDP Notes Essential Question: How do we measure GDP and what does GDP tell us about the economy? Warm Up Activity: Competing Countries! 1. Based on prior knowledge and the warm up activity, what do you think GDP is? 2. What kinds of expenditures count towards GDP? What counts as a negative? 3. Why is it important to measure the success of an economy? GDP Basics . What is GDP? o Gross Domestic Product Gross = total (no deductions) Domestic = within a country + + 1+) ;alumzol Too x Product = goods (and services) sold in an economy . Measuring GDP helps us understand whether the economy is growing or stagnating from year to year When GDP is steadily increasing, it usually means the economy is producing at a higher capacity over time