Macroeconomics

Money & Banking

100

How will demand for loans change when interest rates go up and down?

Demand will go up when interest rates drop

Demand will go down when interest rates rise

200

What is the main job of the Federal Reserve?

Regulate the nation's money supply & interest rates

300

Name the main cause of the Great Recession in 2008

Collapse of the housing market

400

What is the equation for calculating interest?

A=P(1+rt)

500

DAILY DOUBLE: Calculate the amount of interest paid on the following loan:

200,000 at 3.5% interest for 15 years

105,000 in interest

Stock Market & GDP

100

What does a "share" of a stock represent?

A portion of ownership in a company

200

What does "diversifying" your Investments mean?

Not investing in just one company, but spreading those Investments across multiple companies/sectors.

300

What does GDP measure?

The value of all goods and services produced in a country

400

Name a low & high-risk investment

Low: savings account, creative projects (YouTube, etc)

High: Cryptocurrency, stocks 

500

Name the 4 components of GDP

C: Consumption

I: Investments

G: Government spending

N: Net exports

Unemployment, Poverty & Inflation

100

What is inflation?

A general increase in prices across an economy

200

What is the poverty threshold?

The yearly income (based on people per household) that would qualify you as being "in poverty"

300

How do we define those that are unemployed?

The percentage of people that are jobless, but are available to work and are actively looking to work.

400

How is the poverty threshold decided?

Based on the average cost of basic goods and needs

500

Name and describe the 4 types of unemployment

Cyclical: Due to economic downturns

Seasonal: Due to changing of seasons (temporary job)

Frictional: Choose to leave for various reasons

Structural: Skills don't align with those needed for that job

Taxes & Government Spending

100

What is fiscal policy?

Decisions that the government makes about spending and taxation

200

What is the main source of revenue for the federal government?

Income tax

300

What is the main source of revenue for local governments?

Property taxes

400

Describe mandatory vs. discretionary spending

Mandatory: Money the government is required to spend every year on programs (by law)

Discretionary spending: Money that the government is allowed to spend where they please each year

500

Describe how all of the following work:

Proportional tax

Progressive tax

Regressive tax

Proportional: When the percentage of income taxed stays the same across all income levels

Progressive tax: A higher tax rate is applied to higher income levels

Regressive tax: A higher tax rate is applied to lower income levels

Misc.

300

What is monetary policy?

The actions a central bank would take to manage the nation's money supply to achieve economic goals 

400

We know the national debt will always continue to grow, but what might be a consequence of a high national debt?

Higher interest payments

Limited spending for the government in the future

500

What actions could a government take if a country is in a recession?

Increase spending

Cut taxes

Lower interest rates

Create jobs