Whole Class
What part of the business cycle is where the economy is currently in a deep recession, but is not getting worse?
A) Peak
B) Trough
C) Inflationary Gap
B - Trough
This term describes the tools, machines, factories, and or technology that helps promote economic growth.
The $ value of all final goods and services produced within a country in one calendar year is?
GDP
Per unit of output = what?
Productivity
When prices rapidly increase to a level where currency starts to become unevaluable to use and the economy starts to collapse
Hyperflation
When the economy has 6 consecutive months of negative GDP, this period is known as what?
A recession
Structural Unemployment
What period of the business cycle represents a period of economic growth?
Expansion
T of F: People on fixed incomes are not hurt by inflation
False, they are hurt
A percent change in prices from year to year is represented with the what?
Inflation Rate
What types of unemployment make up the natural rate of unemployment?
Frictional and Structural Unemployment
When the economy is running too hot/fast, where prices start to gradually rise, putting pressure on scare resources. This is known as what according to the business cycle model?
Inflationary Gap
What is the best measurement of a nation's standard of living?
What powers does congress have to institute fiscal policy?
Increase and or Decrease Taxes
Increase and or Decrease Government Spending
Assume we are in a recession, what is the specific type of fiscal policy will congress enact to climb out of it?
Expansionary Fiscal Policy
What are the 4 components of GDP?
Consumption, Investment, Government Spending, and Net Exports
What limitation does GDP per capita have when measuring a countries economic health?
It's too heavily weighted towards countries with very large populations
This tool measures changes in prices in a market basket of 80,000+ everyday household items that tracks inflation
CPI
Tell me the two possible methods that congress can do when it comes to contractionary fiscal policy
Decrease government spending and or increase taxes
In the picture shown at the beginning of the video we watched about inflation, what did we see the German family doing with their currency when inflation was so bad to the point of it being worthless?
Using it as wallpaper
This school of economics argues that the economy can fix itself, without the need of government intervention
Classical Theory of Economics
Using our U.S. Dollars as an example. When our dollars have 1's, 5's, 10's, 20's, 50's, and 100's, this is considered to be what function of money?
Unit of account
When the government spends more money than brings in revenue from taxes, what does this mean for our countries balance sheet?
Budget Deficit
Which of the following is NOT part of the labor force, assuming the survey data was taken today?
A) a person starting their 1st day of work on their 16th birthday today
B) An officer in the military
C) A person who was just released from prison today
B) an officer in the military