GDP & Inflation
G-
D-
P-
Fill in each letter with the appropriate word
Gross
Domestic
Product
True or False "All UE is bad"
False!!!!!
The Fed is also known as the ...
What is the Federal Reserve?
Keynesian Economics is also known as what?
Demand-Side Economics
Supply-side economics cannot impact ______ policy.
What is Monetary?
A period in time defined by a fall in GDP
What is a recession/depression?
Mr. O'Connor thinks his skills would better be used as being an astronaut, he quits his job. What type of UE is this?
Frictional UE
What can the Fed do during a period of High Inflation?
They can raise interest rates!!!!
Supply-Side Economics is also known as _______.
Reaganomics
or
Trickledown Economics
Spending government money is an example of expansionary _______ policy.
What is fiscal policy?
GDP adjusted for inflation
What is real GDP?
What is Cyclical UE?
The Fed can implement _______ policy, to help the economy.
What is Monetary?
Supply-side economics can theoretically deal with high inflation and high UE something that Keynesian Economics cannot... What is this situation called?
Stagflation!
True or false, Keynesian economics can use both fiscal and monetary policy?
True!!!!
When prices go down and begin a vicious cycle of producers making less and people buying less.
What is Deflation?
This type of UE is characterized by an industry going out of business
What is Structural UE?
What does it mean that the Fed is independent from the government?
They are not elected!
A prime feature of supply-side economics is....
Lowering Tax Rates!
Deregulating markets!
During periods of recession _____ fiscal policy is reinforced with _______ monetary policy.
Expansionary, Expansionary
This economic problem occurred in Zimbabwe in 2007-2009 causing them to abandon their currency.
What is Hyperinflation?
Full Employment has a UE rate of what %?
What is 2-6%
Name any of the last three Fed Chairmen/women?
Jerome Powell
Janet Yellen
Ben Bernanke
Supply-side economics replaced ________ economics as a response during recessions because doing nothing is politically unpopular.
What is classical economics!
Why is contractionary monetary policy unlikely to be joined by contractionary fiscal policy?
Contractionary Fiscal Policy is politically unpopular, it says spend less and tax more.