Unemployment/Business Cycles
Real/Nominal/Inflation
Macro Terms
Monetary Policy
Fiscal Policy and Inflation
GDP
Macro Graphs
Miscellaneous
100
The point on a business cycle graph where economic decline stops is...
What is trough?
100
Calculate Nominal GDP for Y3
Price of Juice. Quantity of Juices.
Y1 4.00 100
Y2 4.50 90
Y3 6.00 90
What is $540
PY3 x Q Y3
6x90 = 540
100
Social and economic goal aimed at increasing the production of goods and services over time.
What is Economic Growth?
100
Consumers were all fed up with this organization, after they increased interest on reserves to decrease inflation in 2021.
What is the Federal Reserve?
100
Two tools of fiscal policy.
What are Taxation and Government spending?
100
The US purchases 30,000 Nissan Skylines from Japan and Japan employs 100,000 US accountants. These transactions are accounted for in the GDP, as....
What are net exports?
100
The government of Impalaland decided it would be best for everybody if they did this... even though it resulted in a decrease in output and price level.
What is decrease spending or increase taxes?
100
This is used for financial transactions and can be used as a store of value, medium of exchange, or a measurement of value.
As Biggie said... Mo' ___________. Mo' Problems.
Money
200
When the economy is in a recession and employers lay off hundreds of thousands of workers because demand is not keeping up.
What is cyclical unemployment?
200
Calculate Real GDP Y3. Assume Y1 is the Base Year
Price of Juice. Quantity of Juices.
Y1 4.00 100
Y2 4.50 90
Y3 6.00 90
What is $360
PY1x QY3
4 x 90 = 360
200
Social and economic goal aimed at keeping prices stable.
What is limiting inflation?
200
If your bank does not hold this amount of your deposit and decides to loan it out instead, they will be required to pay a fine.
What is Reserve Requirement?
200
Dollars just ain't worth what they once was and it's all because of ______________!
What is inflation?
200
GDP adjusted for inflation.
What is real GDP?
200
This is happening in the graph below:
What is Aggregate Supply is decreasing (or Price level is increasing and real output is decreasing)?
200
This country artist threw javelin while attending Oklahoma State University.
Who is Garth Brooks?
300
The area on a business cycle graph where GDP and employment increase.
What is a recovery/expansion?
300
Calculate The Market Basket Y1 and Y2. Assume Y1 is the Base Year and Juice is the only item in the basket.
Price of Juice. Quantity of Juices.
Y1 4.00 100
Y2 4.50 90
Y3 6.00 90
What is Y1 $400 and Y2 $450
Market Basket = (Base Year Q) × (P in given year)
Year 1 Market Basket
100×4.00=400
Year 2 Market Basket:
100×4.50=450
300
Social and Economic Goal aimed at keeping the unemployment rate as low as possible (and resource use as high as sustainably possible).
Often designated as Yf on the Aggregate S/D Graph.
What is Full Employment?
300
This is one way the Federal Reserve could fix a recessionary gap in a limited reserves system.
What is lowering the discount rate, lowering the reserve requirement, or Buying Bonds?
300
If the economy experiences a recessionary gap, Congress might take this fiscal policy action to push the economy back toward full employment output.
What is decreasing taxes or increasing government spending?
300
The nation of Parityville produces Apples and Oranges, exclusively.
Calculate the Nominal GDP using the information below:
Price Quantity
Apples $1 100 apples
Oranges $2 50 oranges
What is $200?
300
This could result in the below outcome:
What is a Decrease in resource cost, increase in resource availability, decrease in business taxes, or increase in productivity?
300
Winona Ryder was born in this Minnesota town.
What is Winona?
400
You have just graduated from College, have a brand new degree, and are on the hunt for a job.
What is frictional unemployment?
400
Calculate The CPI Y1 and Y3. Assume Y1 is the Base Year
Price of Juice. Quantity of Juices.
Y1 4.00 100
Y2 4.50 90
Y3 6.00 90
What is Year 1 = $100 Year 3 $150
1) Calculate the Market Basket for Each Year
Y1 = 100×4.00=400
Y3= 100×6.00=600
2) Calculate CPI
CPI=(Market Basket in base/ Market Basket in current year)×100
CPI for Year 1 (Base Year):
400/400×100=100
CPI for Year 3:
600/400×100=150
400
Jerome Powell, Chair of the Fed, would be inclined to use this type of policy to correct a recession, whereas Congress might use this other form of policy to influence the economy.
What are Monetary and Fiscal?
400
Oh no! The economy is experiencing inflation! The US Federal Reserve is going to do this and people are not going to be happy.
*The US has an ample reserves system...
What is increase interest on reserves, increase policy rates, or increase the discount rate?
400
If the country is experiencing an inflationary gap, Congress might take this fiscal policy action to move the economy back towards full employment output.
What is increasing taxes or decreasing government spending?
400
The part of GDP (and Aggregate Demand) made up of businesses buying capital goods and services to increase their output.
What is Investment spending?
400
As a result of this change Real Output ________ and Price Level ________.
What is Aggregate Demand Increased (shifted right); increased, and increased?
400
Female mountain goats share a name with this occupation.
What is Nanny?
500
These two types of unemployment make up the natural rate of unemployment.
What is structural and frictional unemployment?
500
Calculate Inflation Rate for Y2. Assume Y1 is the Base Year.
Price of Juice. Quantity of Juices.
Y1 4.00 100
Y2 4.50 90
Y3 6.00 90
What is 12.5%?
1) Calculate Market Basket
Year 1 =100×4.00=400
Year 2: 100×4.50=450
2) Calculate CPI
CPI in Year 1 = 400/400×100=100
CPI in Year 2 = 450/400×100=112.5
3) Calculate Inflation Rate
Inflation Rate=(CPI in Y1/CPI in Y2−CPI in Y1)×100
=(112.5−100/100)×100=12.5%
500
You could RAP the Shifters of Short-Run Aggregate Supply, though... we recommend you just state them in the form of a question.
What are Resource Cost and Availability, Actions of Government, and Productivity (Tech)?
500
In a Limited Reserves system, the central bank may be inclined to use this open market operation to influence the money supply.
What is Buying or Selling bonds?
500
These people benefit from unanticipated inflation.
Who are Borrowers?
500
What is the equation for calculating aggregate demand and GDP?
*it's the same equation for both..
What is C + I + G + Xn?
500
Draw the Change in the Phillips Curve if Aggregate Demand decreases.
Designate the change as A and B
*It's going on the Board because I don't want to pay for this feature!
500
This is the maximum number of points a player can rack up on (OG) Pac*Man.
What is 3,333,360 points?