Show:
GDP
Intro to Macro
Unemployment
Inflation
Business Cycle
100
This is the best measure of a nation’s standard of living.
What is GDP per Capita?
100

Economists collect statistics on production, income, investment, and savings.

What is national income accounting?

100

The 3 Types of Unemployment.

What is Frictional, Structural, and Cyclical?

100
The reasons inflation can be bad.
What is rampant inflation is bad because banks don’t lend and people don’t save. This decreases investment and GDP.
100

This field of study was created to 1.Measure the health of the whole economy. 2.Guide government policies to fix problems.

What is Macroeconomics?

200
The equation for the expenditure approach to GDP.
What is C+I+G+X-M?
200

the dollar value of all final goods and services produced within a country’s borders in one year.

What is GDP?

200

The four requirements for being considered a part of the labor force.

What are you must be Above 16 years old, Able and willing to work, Not institutionalized (in jails or hospitals), Not in the military, in school full time, or retired

200
Helped or hurt by inflation? A man who lent out $500 to his friend in 1960 and gets paid back $500 in 2015.
What is hurt?
200
The three goals of all economies
What is Promote Economic Growth Limit Unemployment Keep Prices Stable (Limit Inflation)
300
What GDP category does the following fall into: $120 Social Security payment to Bob
What is not included, transfer payment?
300

The equation for finding change in GDP

What is Year 2-Year 1/Year 1 x 100

300

The equation for finding the unemployment rate.

What is #unemployed/# in labor force x 100

300
Helped or hurt by inflation? An elderly couple living off fixed retirement payments of $2000 a month
What is hurt?
300
During the business cycle, the space between full employment and a peak.
What is an inflationary gap?
400
What GDP category does the following fall into: Lego makes new $2M factory
What is "Capital I" investment?
400

These are not included in GDP.

What is Intermediate Goods Non-production transactions - financial and used goods Non-market and illegal activities

400

A stockbroker who lost her job due to a downturn in the economy and is searching for work. A VCR repairman who lost his job during the recession and is looking for work. Which one is structurally unemployed?

What is the VCR repairman?

400

Helped or hurt by inflation: Someone who borrows $1000 at 5% interest.

What is helped?

400
The GDP deflator equation.
What is nominal GDP/Real GDP x 100
500
The four categories of the income approach and the categories to which they correspond.
What is Rent=Land Wages=Labor Interest=Capital Profit=Entrepreneurship
500

The five reasons that some economies are more productive than others.

What is 1. Economic System Example#1: Capitalist countries have historically had more economic growth. Capital (like robots) can produce more than people Countries with more capital, can produce more products than countries without a lot of capital. 2. Property Rights 3. Capital Ex: Capital stock is machinery, tools, and man-made resources. Example#1: India has over a billion people (human resources) but relatively few capital resources and therefore a lower GDP than the U.S. Example#2: Japan has few natural resources but a high GDP 4. Human Capital (Knowledge) 5. Natural Resources

500

The 3 Types of Unemployment.

What is Frictional, Structural, and Cyclical?

500
The equation for finding CPI
What is price of market basket/price of base year market basket x 100
500
In an economy, Real GDP (base year = 1996) is $125 billion and the Nominal GDP is $150 billion. Calculate the GDP deflator.
What is 120 billion?