Gross Domestic Product (GDP)

Written by Jonathan Milner

Definition

The total market value of all final goods and services produced in a country during a specific period. It is the most common measure of the size and health of an economy.

Example

A common rule of thumb says two quarters in a row of shrinking GDP signal a recession, and presidents' approval ratings often rise and fall with economic growth.

 

Questions

  1. Define gross domestic product.

  2. Explain why GDP is used to measure the health of the economy.

  3. Describe how GDP growth can affect a president's approval rating.

  4. Explain how fiscal policy can be used to increase GDP.

  5. Explain one limitation of GDP as a measure of how well people are doing.

  6. Identify the branch of government that controls fiscal policy decisions about taxes and spending.

  7. Describe how voters often respond to economic growth or decline in elections.

  8. Is GDP the best way to judge whether the economy is working for everyone? Explain.

  9. What emoji would do a good job of expressing the concept GDP?

  10. Translate gross domestic product into plain English.

Remember!

Now, let’s commit this term to our long-term memory. On a scrap piece of paper, take 10 or 20 seconds to draw GDP! Draw with symbols or stick figures if you wish. Nothing fancy. Don’t expect a masterpiece. No one else will see this but you. Look at your drawing. That’s all - now it’s downloaded into your memory. Destroy the piece of paper in a most delightful way.

Further Review

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GoPo Glossary

Jonathan Milner

Civics Maven!

https://www.gopopro.com/
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