Macro I
Name the three major economic indicators.
Unemployment
Inflation
GDP
What measurement is used for production?
GDP
What does GDP stand for?
Gross Domestic Product
This type of GDP (nominal or real) accounts for inflation.
real GDP
If you want to get an accurate representation of a country’s production, what GDP number do you look at?
Real GDP
Name the four types of unemployment.
Frictional
Structural
Cyclical
Seasonal
Name one thing that is damaged by high inflation rates and why.
Savings - Things get too expensive and go outside the limits of saving.
What is happening to unemployment rates when GDP is decreasing and why?
Going up. More and more people get unemployed because the economy is lowering in production.
What are the three countries that suffered high inflation rates over a short period of time?
Zimbabwe
Germany
How and why did the country recover from the Great Depression?
Government spending during World War II
Name three types of inflation.
Cost-Push Inflation
Demand Inflation
Printing Money
From this list sort what is or is not part of the GDP.
Your parents sell your childhood home
Getting wine from Italy
Selling a dresser on Facebook MarketPlace
Buying weapons for the army
Getting a tired fixed
A carpenter is buying wood to make a chair that is going to be later sold.
Write out on board.
2+ QUESTION: What was unique about the United States' inflation rate in the last couple of years?
(Bonus point to tell me what the inflation rate is 6.8)
1. It has reached extreme heights since the 1960s.
2. 5.0
In a recession what are the actions/expectations of humans that can damage the economy further?
People stop buying which stop the flow of money into the economy putting them further into recession.
What are three things that cause cost-push inflation?
Land Rent
Workers Demanding More Money
Supply prices increase.
Name one way the government helped the economy recover after the 2007-2009 Recession.
The government bought out businesses and banks to save them from declaring bankruptcy.
What was the name of the Act emplaced after the 2007-2009 Recession to help prevent something similar from happening ever again?
Dodd-Frank Act
Describe three things that caused the 2007-2009 Recession.
Describe how Covid has caused a change in the three topics of macroeconomics.
Check with Miss Stephenson.