2.1+NI+Accounts

[|The circular flow of income:]

media type="youtube" key="mN5HPJYJzus" width="560" height="315"

 Further circular flow of income notes

Measuring Economic Activity media type="youtube" key="MrXnI94sB9E" width="420" height="315" 



Video explaining the difference between nominal and real GDP

Calculating Real GDP using the GDP Deflator: media type="youtube" key="v5YT8GlSxoU" width="560" height="315" And a nice diagram to further illustrate the point:




 * Limitations of National income when measuring standards of living over time and comparing different countries **

media type="custom" key="29147825"



This is the output of an economy in 1986  it is valued at $1000

This is the output of an economy in 2014  It is also valued at $1000. <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Is it true to summarise that there has be no economic growth?

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">P163-165 Textbook

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Joseph Stiglitz highlights the limitations of GDP data

media type="youtube" key="cpR55Bahlbk" height="315" width="420"

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">The following video shows that often economic growth fails to measure the environmental costs associated with this growth

media type="youtube" key="fIF6hkncCDo" height="315" width="560" <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">And a great video of Geoffrey Heal on the cost to the environment (natural capital) of economic growth.

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">media type="youtube" key="1WvpJ6USrAQ" height="346" width="616"

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">That is why Economists are now looking at alternative measures of National income that take into account the environmental impact. <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">[|GPI]

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">GNHI

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px; line-height: 0px; overflow: hidden;">media type="custom" key="25415828"

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px; line-height: 0px; overflow: hidden;">

media type="youtube" key="0JVPeFcONHA" width="560" height="315"

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Extension reading: [|A great article on alternatives to GDP]

[[file: Macro Objectives Data response Q.pdf]]
<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 18px;">HL Extension Tasks:

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Calculate Nominal GDP from the following data: (all $bn) <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Consumer expenditure= 35.86 <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Investment= 6.52 <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Government Exp= 22.82 <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Exports= 8.6 <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Imports=9.8

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 17px;">And another worksheet: <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 17px;">

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Note that whilst the business cycle is part of unit 2.1, economic growth is actually part of unit 2.3. However it fits in better here! <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">media type="youtube" key="VYoz9wHan0Q" width="420" height="315"
 * Economic Growth and the business cycle**
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Economic Growth
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">The economic Cycle