Gross Domestic Product
Measuring GDP is best using this type, because it measures using inflation.
Real GDP
Name a country that has experienced hyperinflation (really high prices, quickly).
Venezuela, Zimbabwe, China, Germany
This is what happens to unemployment when Real GDP decreases.
Unemployment increases
The main tool of the central bank is changing _______ ________.
Interest rates
True or False. Increasing the minimum wage would help to lower inflation.
False
Name 3 of the 4 components of GDP.
Consumer Spending, Government spending, Business investment, Net Exports (Exports - Imports)
Who is HURT by inflation?
Lenders, savers, people on fixed incomes
Which ethnic group is most unemployed in the USA (Asian, Black/African-American, Hispanic/Latinos, White)
Hispanic/Latino
(then Black/African-American, Asian, White in most to least order)
These are the two tools of fiscal policy.
These are the three main goals of macroeconomics (countries goals).
Have economic growth (GDP increase)
Stable Prices (low inflation)
Full employment (unemployment low)
Give an example of a category OR specific item that would NOT be included in GDP.
Used items, free/charitable items, services done at home, imported goods, blackmarket
Who are HELPED by inflation?
Borrowers, businesses where the product is a higher cost than production
Name one of the three groups of people who are NOT counted in unemployment rates.
Retired people, students, those not looking for work
Name one solution when there is high unemployment.
Gov't spend more money
Gov't lower taxes
FED lowers interest rate
The Central Bank of the United States is called the ___________.
Federal Reserve or FED
This is how you would compare countries that have very different populations and check their standard of living.
Real GDP PER CAPITA
Name or describe ONE of the two causes of inflation.
Demand pull inflation (consumers buying more)
Cost-push inflation (higher cost of production)
Name the Four types of unemployment
Structural, Frictional, Cyclical, Seasonal
Name one solution when the GDP is decreasing
Gov't spend more money
Gov't lower taxes
FED lowers interest rate
The US government has brought in nearly $244 BILLION in 2025 because of taxes on imports. Name what these taxes are called.
Tariffs
This is the definition of "Gross Domestic Product/GDP."
“The total value of all finished goods and services made in a country in a year”
Draw and label the parts of the business cycle.
Peak, Trough, Expansion, Contraction, Real GDP, Time
This is about what percent unemployment is kept around.
4%
Name a solution when there is high inflation
Gov't spend less money
Gov't raises/increases taxes
FED raises/increases interest rate
Name a government action that would lower the national debt (this is from the Fiscal Ship game)
Answers vary, but could include cutting programs, increasing taxes