Going Around in Circles?
Ew, That's Gross!
Get a Job, Punk
The Inflatables!
Wild Card
100

Calculating GDP by adding up the dollar value added at each stage of the production process.

What is the value added approach?

100
Real GDP is made up of these four components.
What is C, I, G & Xn?
100
This is the equation for finding the unemployment rate.
What is #unemployed/# in labor force x 100?
100
This type of inflation would result from an increase in the price of resources.
What is cost-push inflation?
100
These are the four phases of the business cycle.
What is peak, recession (contractionary), trough and expansion (recovery)?
200

This model shows how households, businesses and the government interact.

What is the circular flow?

200
The GDP does not include second hand (used) sales to avoid doing this.
What is double counting?
200
If Pancho the expert video cassette maker is unemployed recently due to the advent of DVDs, his unemployment is of this type.
What is structural?
200
Inflation is expected to be this amount if the nominal interest rate on a loan is 8% and the real interest rate is 3%.
What is 5%?
200
This is the government agency responsible for gathering the data used to calculate both the consumer price index and the unemployment rate.
What is the Bureau of Labor Statistics?
300

Public goods and services are provided by this entity.

What is the government?

300
This is the value of the Nominal GDP, when Real GDP = $200 billion and the price index = 200.
What is $400 billion?
300
The natural rate of unemployment, found at the full employment level, is when there is none of this type of unemployment.
What is cyclical?
300
Helped or hurt by inflation: An elderly couple living off fixed retirement payments of $2000 a month.
What is hurt?
300
This is the official economist definition definition of a recession.
What is Real GDP falls for two consecutive quarters (6 straight months)?
400

Businesses sell goods and services to households in this market.

What is the factor market?

400
Of the following, the one included in GDP as part of consumption: a $1200 Social Security payment to Bob, Bob spending $50 on a hammer and nails at the hardware store, or Joe building a new house for Bob and his wife.
What is Bob spending $50 on a hammer and nails at the hardware store?
400
The unemployment rate is often criticized as a good measure of the economy because it fails to include these types of people in the calculation.
Who are discouraged workers?
400
The effect on inflation if CPI is 150 in Year 1 and 195 in Year 2.
What is increased by 30%?
400
This is the best measure of a nation’s standard of living.
What is GDP per capita?
500
This approach adds up all the income earned in the economy including wages, rent, interest and profit.

What is the income approach?

500
If the nominal GDP for an economy in a given year was $135, and the real GDP was $125, this is the value of the GDP deflator price index.
What is 108?
500
You don’t like your job in a market bagging groceries and you quit then start looking for a new job. You would be classified as this type of unemployment.
What is frictional?
500
If the cost of a market basket is $150 in Year 1, $120 in Year 2, and $200 in Year 3, then the price index for Year 1 is this value if Year 3 is the base year.
What is 75?
500
If nominal wages have risen by 50% over a ten-year period and price level has increased by 40% in that same period, then this happened to real wages.
What is increased by 10%?
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