Economics NYU

1. Recitation #1
Sanjana Jain
ssj379@nyu.edu
Office Hours: By Appointment

2. Today’s Agenda
• Introduction
• Math Review
• Questions Review
• Debate Format
• Q&A
• Participation

3. • 1.1. Per-capita GDP. What are some of the issues with comparing per-
capita GDP across time and across countries?

4. • 1.2. GDP during COVID-19. Listen to the podcast GDP -32.9%???!!! (or read the transcript). In it we learn
that “for the months of April, May and June — that’s the second quarter — the U.S. economy grew at an
annualized rate of negative 32.9%.”
• (a) Does this mean that the US economy shrunk by one third?
• (b) What makes the current recession so different from the Great Depression in terms of GDP numbers?

5. Annualised Rate- Not Needed
Formula = (1+return)^(365/days)-1
Eg. US Economy shrunk by 9.5% in the second quarter, and will grow at
an annualised rate of -32.9%.
Meaning: If the negative growth rate of 9.5% were to continue for the
whole year, we would end up with a 32.9% drop in GDP.
Link for more understanding: https://finance.zacks.com/differences-
annualized-return-absolute-return-1221.html

6. • 1.3. What should we measure? While campaigning for the US presidency in 1968, Senator Robert Kennedy gave a famous
speech questioning “the mere accumulation of material things” in American society. Read his speech in full or listen to a
sound recording of it.
• (a) Which goods does Kennedy list as included in the GDP measure (starting at about 16 minutes)?
• (b) Do you think these should be included in such a measure, and why?
• (c) Which goods does Kennedy list as missing from the measure?
• (d) Do you think they should be included, and why?
• (e) Alternatives to GDP?

7. Debate Format
• Polling
• 1 minute each side- Opening Remarks
• 8 minutes each side
• Q & A
• 1 minute each side- Closing Remarks
• Polling