Analyzing Economic Issues (CIA4U)

Name: __________________

Output
Unit 6 Outline
Introduction
Welcome to macroeconomics!
This unit introduces students to
the centrality of output in
understanding the national
economy. Students will examine
and measure national output,
understand how countries track
and measure exchanges in output,
and also discuss sources of
economic growth and stability.
Additionally, students are
introduced to the basic economic
model of the business cycle, and
balance of trade theory.

Big Questions
The main overarching question of this course is: How do individuals and societies make sense of
and assess economic information to make decisions?

By the end of this introductory unit, you will be able to answer the following questions:

1. How can we measure a nation’s output?

2. How do nations track and measure exchanges of output?
3. What makes national output go up and down?

Assessment and Evaluation

Assessment for Learning Assessment of Learning Assessment as
(Formative) (Summative) Learning (Formative)
 Mind Map  Unit Test  Diagnostic
 Newspaper Analysis Worksheet
 Unit Quest (Google Form)  Teacher-Student
 Morton Workbook conferences
Activities
*See Learning Goals and Success Criteria Checklist at the end of this outline for more
information about our learning targets for this unit.*
 Analyzing Economic Issues (CIA4U)
Name: __________________

Key Terms, Concepts and Skills

Graphing & Numeracy Skills
1. Calculate gross domestic product
2. Calculate an output gap
3. Graph and interpret the business cycle

Key Vocabulary

Gross Domestic Product Exports Balance of Payments

Gross National Product
Consumption
Business Investment
Government Spending
Economic Growth
Value Added
Long-run Aggregate Supply
The International Effect
Imports
Circular Flow Diagram
Money Economy
Non-money Economy
Supply-Side Economics
Aggregate Supply (SRAS)
Production Possibility Curve
The Real Interest Rate
Effect
Current Account
Financial Account
Debit
Credit
Gross National Happiness
Aggregate Demand (AD)
Wealth Effect
Keynesian Economics

More vocabulary!

“Animal Spirits” Economic Growth Sources of Growth

Human Development Index Total Factor Productivity Unemployment Rate
Potential Output Business Cycle Cyclical unemployment
Real Output Unemployment Frictional unemployment
Employment Labour Force Structural unemployment
The Simple Spending Recession Barriers to Trade
Multiplier Marginal Propensity to
Consume

Unit 6: Output (Lesson Thread)

Flow of Content
Measuring National Output (Calculating Output: Money & Non-Money Economy, Value
added vs. Finished G&S, Expenditure Approach, Circular Flow Diagram, Alternatives to GDP
measures “Standard of Living, HDI, GNH, GPI)
Exchange of Output across Countries (BOP Statement: Current and Financial Account)
Sources of Growth(Supply-side Economics: TFP, savings/investment vs. Public Investments)
Causes and Effects of Economic Downturns (Recessions and Depressions) –
Impairment/decline of factors of production, decline in expectations “animal spirits”,
business cycle, potential vs. read output, aggregate demand and aggregate supply, general
equilibrium, the simple spending multiplier, unemployment
 Analyzing Economic Issues (CIA4U)
Name: __________________

Pre-Learning Assessment

1) How can we measure a nation’s output?

Pre-Learning (What do you think you Curiosity (What questions do you have?)
know?)

Post-Learning (What do understand now?)

I used to think/understand ______________ about measurements of output. I now

think/understand _____________ because ____________________.
 Analyzing Economic Issues (CIA4U)
Name: __________________

2) How do nations track and measure exchanges in output?

Pre-Learning (What do you think you Curiosity (What questions do you have?)
know?)

Post-Learning (What do understand now?)

I used to think/understand ______________ about exchanges of output. I now

think/understand _____________ because ____________________.
 Analyzing Economic Issues (CIA4U)
Name: __________________

3) What makes national output go up and down?

Pre-Learning (What do you think you Curiosity (What questions do you have?)
know?)

Post-Learning (What do understand now?)

I used to think/understand ______________ about what makes output go up and down. I

now think/understand _____________ because ____________________.
 Analyzing Economic Issues (CIA4U)
Name: __________________

Learning Goals and Success Criteria Checklist

LEVEL of SUCCESS CRITERIA ACCOMPLISHED

UNDERSTANDING
How can we measure a nations output?
Idea(s) I can define the money and non-money economy.

I can define the term gross domestic product.

I can explain the difference between the value-added and final sales
approach to calculating GDP.

I can identify and define the different sectors of the national

economy using the expenditure approach to calculating output (i.e.
consumers, business investments, government, & net exports).

I can explain what the following identity means: National Output

(GDP) = C + I + G + (X – M)

I can label and identify different sectors of the national economy

using the circular flow diagram.

I can explain what the human development index (HDI) measures.

Relating Ideas I can calculate a nation’s GDP using the expenditure approach and
the circular-flow diagram.

I can discuss how the money and non-money economy impact the
accuracy and validity of GDP measures.

I can compare the components of national output and evaluate the

relative importance of each to a nation’s economic performance.
Extending Ideas I can critique the concept of GDP as a measure of the wellbeing of a
country’s citizens.
How do nations track and measure exchanges of output?
Idea(s) I can define and read a country’s balance of payments.

I can list and explain all the components of the balance of payments
(e.g. components of the current account, components of the
financial account).

I can explain what debits (cash outflows) and credits (cash inflows)
mean.
I can define a tariff and quota.
Relating Ideas I can analyze the effect of an exchange of output (trade) on a
country’s balance of payments.
 Analyzing Economic Issues (CIA4U)
Name: __________________

I can interpret the meaning of a current or financial account surplus

or deficit.

I can interpret a graph of the effects of a tariff on a country.

Extending Ideas I can evaluate the effects of balance of payments imbalances on a
nation’s economy (debtor or creditor nation).

I can make meaningful connections between what I’ve learned about

the balance of payments and trade barriers to other subjects and the
world around me.
What makes national output go up and down?
Idea(s) I can define real and potential GDP (i.e. the output gap).

I can explain the difference between short-term cycles and long-term

trends in the economy.

I can list and explain the factors that contribute to economic growth.

I can describe the factors that decrease national output.

I can define unemployment; calculate the unemployment rate; and

define the main 3 types of unemployment (structural, cyclical, and
frictional).

I can define aggregate supply and aggregate demand and discuss the
determinants of each curve.

I can define long-run aggregate supply (LRAS).

I can define Keynesian and Classical economic approaches to

economic policy.
Relating Ideas I can analyze the business cycle and discuss the likely effects of an
output gap on national unemployment.

I can discuss the differences between supply-side economics and

public policy advocates in debates on economic growth policy.

I can apply my understanding of the AS/AD model to understand

shifts and changes in general equilibrium.
Extending Ideas I can engage in the debate around differing opinions about the
sources of economic growth (supply-side vs. public policy).

I can engage in a debate around government management of

unemployment and the business cycle.

I can apply the model of general equilibrium to current events.