Lesson 5: Forces at Work: Macroeconomics

  1. Review of assignments and readings.
  2. Continuation of discussion from Lesson 4:
    1. What happens when prices change? E.g., inflation, hyperinflation, deflation, fluctuation in terms of trade (importance of diversity), exchange rates, devaluation.
    2. Role of expectations, confidence, self-fulfilling prophecies.
  3. Discussion: What is GDP for?
  4. Different versions of GDP lead to different perceptions.
  5. Class Activity: satellite accounts
    1. Small-group discussion of what to add.
    2. Report-back to full group.
    3. Discussion of value of satellite accounts vs. piling all together into one figure, such as HDI or GPI.
  6. Wrap-up and quick evaluation.
Take-home point: we measure what we care about, and care about what we measure.