Teaching Your Kids Economics
I believe that everybody-and that includes your kids-should have some basic knowledge of economics and be financially literate. Else you are at a disadvantage in today's world. * for the full .pdf document you can email me and I will send to you. Lesson 1: What is GDP (Gross Domestic Product) * We use the US economy as our case study. And the data source is FRED (US Federal Reserve Education Department) GDP — Gross Domestic Product — is the total value of everything a country makes and sells in a year: every burger, haircut, movie ticket, house, and computer chip. It's the best single number we have for measuring the size of an economy. Right now, the US economy produces goods and services at a pace of about $31.9 trillion per year — that's $31,900,000,000,000! Economists count GDP by adding up four kinds of spending. The equation looks like this: GDP = C + I + G + (X - M) . See attached Table 1 for what this equation means. Now let's plug the real numbers into the equ...