Slides 6–34

5. Advance through Slides 6–7. Instruct students to discuss the question on Slide 7 with a peer. Prompt students to recall what they learned about the production possibilities frontier (PPF) in Unit 1 as needed.
6. Click to reveal the correct response on Slide 8. Remind students what the PPF represents and explain that their understanding of GDP will be supported by this already-familiar concept.
7. Proceed to Slide 9. Distribute 1 copy of Student Handout to each student and encourage students to add notes throughout the lesson.
8. Display Slide 10. Direct students to discuss their answers to the questions with a peer. Click to reveal the correct responses and debrief as a class.
9. Proceed to Slide 11 and review the connection between the PPF model and potential GDP.
10. Display Slide 12. Click to illustrate how GDP growth can be modeled on the PPF. Ask students to recall what can lead the PPF to shift to the right.
11. Proceed to Slide 13. Click to illustrate how GDP contraction can be modeled on the PPF. Ask students to recall what can lead the PPF to shift to the left.
12. Display Slide 14. Tell students they will now take what they know about GDP and combine it with additional data to evaluate GDP's usefulness.
13. Proceed to Slide 15. Ask students to discuss the question on the slide with a peer. Call on several students to share. Note: The prompt is intentionally ambiguous to allow students to consider what kinds of things are important to them that might not be included in GDP.
14. Display Slide 16. Explain that there are many measurements economists can use to think about a "good life." Click to define two common measurements: standard of living and quality of life.
15. Proceed to Slide 17. Read the question on the slide and click to illustrate some possible answers. Direct students to answer the question in the corresponding portion of Student Handout. Note: Students will revisit this question at the end of this lesson and in Lesson 3.5.
16. Place students into groups of 4 (groups of 3 or 5 if necessary). Distribute 1 set of Our World in Data Graphs to each group. Direct students to distribute 1 graph to each member and follow along as you guide them through the "Investigating GDP per Capita" portion of Student Handout. For groups of 5: have 2 students analyze 1 graph together. For groups of 3: have 1 student analyze 2 graphs, or remove the "Life satisfaction" graph.
17. Draw students' attention to the "Investigating GDP per Capita" portion of Student Handout. Explain that students will respond to the questions in the box that corresponds to their graph. Reinforce that students work independently when analyzing their graph — they will present that information to their group later.
18. Allow approximately 3 minutes for students to analyze their graph and answer the 2 questions.
19. Proceed to Slide 18. Explain that students will briefly leave their group to confer with peers who analyzed the same graph — this is their opportunity to gain clarity before presenting. Note: For students in a group of 3 who analyzed 2 graphs, direct them to join the group associated with the graph they felt least confident about. Allow "expert groups" approximately 2 minutes, then direct students to return to their original group.
20. Display Slide 19 and review the instructions. Tell students that after all group members share, they will synthesize the information from the graphs to answer a question. Allow approximately 4 minutes.
21. Proceed to Slide 20. Direct students to follow the instructions and record responses in the central box on Student Handout. Ask several students to volunteer their responses.
22. Advance through Slides 21–22. Explain that students will connect what they have learned about GDP to the consequences of economic growth. Point out the "Consequences of Economic Growth" section of Student Handout and encourage students to add notes and examples.
23. Proceed to Slide 23. Emphasize that the data indicates a positive relationship between GDP per capita, quality of life, and standard of living. Because of this, GDP is a useful indicator of economic and overall well-being — but it has limitations. Note: The child mortality graph shows a negative relationship between child mortality and GDP per capita, which supports a positive relationship between GDP per capita and quality of life.
24. Display Slide 24. Use the data to explain that U.S. GDP growth is measured quarterly and that the annualized quarterly growth rate is relatively volatile. Click to illustrate a period of growth and contraction. Click to reveal the question and discuss as a class. Consider asking where in the PPF model America was likely operating during the first quarter of 2025 and how students could model the change from Q4 2024 to Q1 2025.
25. Progress through Slides 25–26. Use the data to explain the general upward trend of both GDP and GDP per capita. Ask students to consider how this trend relates to standard of living and quality of life over the period depicted. If tight for time, Slides 23–24 can be skipped.
26. Progress through Slides 27–28 and present the pie analogy to emphasize the relevance of GDP growth and contraction for people in a society.
27. Display Slide 29. Instruct students to discuss the questions with a peer. Debrief as a class.
28. Progress through Slides 30–33. Preview the limitations of relying solely on GDP when determining the overall health of an economy. Tell students they will explore these critiques in more detail in the next lesson.
29. Display Slide 34. Use the images on the slide to illustrate how GDP and averages such as GDP per capita can misconstrue the individual experience.