This lesson focuses on the monthly report on Real Gross Domestic Product (Real GDP), produced by the U.S. Bureau of Economic Analysis (BEA). The current data and historical data are explained. The meaning of GDP and potential impacts of changes of GDP are explored. This focus on economic data will also raise the question about a potential recession in the United States in 2008. Goals of GDP Focus on Economic Data The goals of the GDP focus on economic data are to provide teachers and students: access to easily understood, timely interpretations of monthly announcements of rates of change in real GDP and the accompanying related data in the U.S. economy; descriptions of major issues surrounding the data announcements; brief analysis of historical perspectives; questions and activities to use to reinforce and develop understanding of relevant concepts; and a list of publications and resources that may benefit classroom teachers and students interested in exploring inflation.
Explore the connection between the economic indicators and real-world issues. These lessons typically can be done in one class period.
Have you ever thought of how much it might cost you to finance the purchase of a home? The home's purchase price is likely to be many times the yearly income of the typical household. If families waited until they had accumulated enough savings to use cash to pay for a home, they would be denied the benefits of homeownership for many years. Instead, most families go to a mortgage banker or some other lending institution to obtain the necessary credit to purchase their home. A mortgage loan is a credit instrument used by homebuyers to finance the purchase of a home. Interest payments made on the mortgage loan represent the cost of acquiring this credit. For most homebuyers, the largest cost of buying a home is the monthly interest paid on the mortgage loan.
The following lessons come from the Council for Economic Education's library of publications. Clicking the publication title or image will take you to the Council for Economic Education Store for more detailed information.
This publication contains lessons for teaching personal finance concepts to 9-12 students. Lessons for older students illustrate certain uses of more abstract representations.
4 out of 24 lessons from this publication relate to this EconEdLink lesson.
Use this DVD program to show students how to live healthy, wealthy and risk-free.
3 out of 12 lessons from this publication relate to this EconEdLink lesson.
This publication contains 23 lessons that introduce high school students to the world of investing--its benefits and risks and the critical role it plays in fostering capital formation and job creation in our free market system.
2 out of 23 lessons from this publication relate to this EconEdLink lesson.