An Educator’s Guide to Measuring Economic Output

Issued by Federal Reserve Bank of St. Louis

This module describes how economists use GDP to measure economic output -- GDP is a key economic indicator used to measure the health of the U.S. economy and to determine what type of policies the Fed should use to promote a strong U.S. economy.

Type Learning
Level Foundational
Time Hours
Cost Free

Skills

Apply an understanding of the output gap to monetary policy
Differentiate between actual and potential GDP
Differentiate between real and nominal GDP
Explain how GDP is calculated

Earning Criteria

To earn this badge you will read content, watch a video, and complete two assessments.

Standards

Voluntary National Content Standards in Economics

The most recent version (2010) of the Voluntary National Content Standards in Economics does not align with the Fed’s ample reserves implementation of monetary policy. You can read our recommendations for updating the Voluntary National Content Standards in Economics at https://www.federalreserve.gov/econres/feds/files/2020092pap.pdf.