SHS2 Economics · Semester 2 Week 7: Macroeconomic Variables (GDP, Inflation, Unemployment, Exchange Rate)

Lesson notes

Learning Objectives

Indicator: 2.4.1.LI.1 - Calculate National Income by using any of the three approaches.

By the end of the lesson, learners can:

Define National Income and distinguish between the product, income, and expenditure approaches to measuring it.
Calculate National Income using the product (output) approach by summing the value added at each stage of production.
Calculate National Income using the income approach by summing wages, rents, interest, and profits.
Calculate National Income using the expenditure approach by summing consumption, investment, government spending, and net exports (C + I + G + (X - M)).
Reconcile the results from the three approaches and explain why they should theoretically yield the same total.

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Curriculum details

Strand: Government Economic Policy and Trade (Strand 4)
Sub-strand: Macroeconomic Variables (GDP, Inflation, Unemployment, Exchange Rate) (4.1)
Content standard: 2.4.1.CS.2 - Demonstrate understanding of the measurements, uses and importance of National Income. 2.4.1.LO.1 Determine the effects of changes in the fundamental macroeconomics variables on the economy and their control policies. 2.4.1.LO.2 Use the existing and relevant approaches (expenditure, product and income approach) to analyse the National Income.
Indicator: 2.4.1.LI.1 - Calculate National Income by using any of the three approaches.
Suggested placement: Semester 2, Week 7 (Week 27 of the year)
Our suggestion, laid out in curriculum order across three terms of twelve weeks. NaCCA does not fix the week, so follow your school's scheme of learning.
Curriculum reference: NaCCA curriculum document, p. 81

Exemplars (from the NaCCA curriculum)

Building on What Others Say: Brainstorm and discuss how countries determine national income by using product and income approaches. Give more time to learners approaching proficiency.
- Awareness of personal biases, peculiarities and stereotypes during the discussion process
- Tolerance for diversity
Assessment (2.4.1.AS.1). The document marks these depth-of-knowledge levels for this indicator: Level 4 Extended critical thinking and reasoning.
Teaching and Learning Resources:
- Pens
- Exercise books
- Markers
- White boards