Week 5: Interactive activity
5.1 Learning Outcomes:
• Distinguish between microeconomic and macroeconomic issues.
• Present the Circular Flow Diagram.
• Calculate Gross Domestic Product (GDP).
• Identify the components of Gross Domestic Product (GDP
5.2 Action Required:
Watch the video using the following link:
5.3 Test your Knowledge (Question):
Explain GDP and its Components.
Answer the given question in Discussion Board.
Khan Academy (https://www.khanacademy.org/economics-finance-domain/macroeconomics/gdp-topic/circular-econ-gdp-tutorial/v/circular-flow-of-income-and-expenditures)
Circular flow of income and expenditures (video) | Khan Academy
In a closed economy, goods and services are exchanged in product markets and factors of production are exchanged in factor markets. In this video, we explore how to model this in a straightforward way using the circular flow model.