Pupils explore changes in GDP and GDP per capita to gauge economic performance and individual prosperity in various regions.
Scenario
You are interning at a bank and your first project is to research economic growth in various cities and countries around the world. You learn that economic growth is typically measured in changes in gross domestic product (GDP), which refers to the financial value of goods and services produced by an economy. Additionally, your manager explains that you should also consider GDP per capita, which is calculated by dividing an economy’s GDP by its population, in order to better understand the average economic output of each individual person within an economy.
Curriculum references
| National Curriculum 16 | Set up, solve and interpret the answers in growth and decay problems, including compound interest and work with general iterative processes. |
| OCR 5.03a | Calculate simple interest including in financial contexts. Solve problems step-by-step involving multipliers over a given interval, for example, compound interest, depreciation, etc. Express exponential growth or decay as a formula. Solve and interpret answers in growth and decay problems. |
| AQA Edexcel R16 | Set up, solve and interpret the answers in growth and decay problems, including compound interest. And work with general iterative processes. |