GDP
Business Cycle
Unemployment/ AS&AD
Money Stuff
Potpourri
100
What is the Formula for a nation's GDP
C+I+G+(X-M) = Nations GDP
100
What are the two phases of the business cycle?
Contraction = Economy slowing down, tightening up.
Expansion = Economy growing, expanding.
100
What does unemployment rate show us?
Unemployment rate is the percent of the labor force that is unemployed.
100
What is one characteristic of money?
Durability, Portability, Divisibility, Stability, Uniformity , Scarcity, Acceptability
100
Who has won the most gold medals ever in the olympics?
Michael Phelps - 23
200
What is inflation?
When the price of an object goes up.
Example -> Milk going up in price.
200
What is the bottom and top of the business cycle called?
Trough is the bottom, Peak is the top.
200
What does aggregate mean?
All of it, or in total. (Large scale supply and demand)
200
Name some functions of money?
Medium of Exchange: exchange/payment for products; buyers give sellers in exchange for goods/services.
Unit of Account: an expression of value; a way for comparing the values of goods and services.
- Keep track of debts and investments.
Store of Value: money holds its value if you decide to store it instead of spend it.
Helps people convert purchasing power from present to future value.
200
What two teams have the most super bowl wins?
Patriots and Steelers.
300
What does the C, I, G, X, and M stand for in the GDP formula?
C = Consumption
I = Investment
G = Government spending
X= Exports
M = Imports
300
What can cause an expansionary period?
High growth: large investments, increase in employment, income and expenditure
300
What does aggregate Supply and Demand show us?
A marker of how a country is doing, helps us watch the economy and make sure it is doing well.
300
What is the central bank in the U.S.?
The Federal Reserve.
300
What men's college basketball team has won the most NCAA championship the most?
UCLA - 11
400
What do you get when you calculate (X-M)?
Net exports
400
What can cause a contractionary period?
Excess inventory: Those firms which had produced an abundance during the expansion phase face the problem of maintaining unsold items causing prices to fall.
Surplus= prices falling
400
What are the three parts of the labor force?
Employed
Unemployed
Not in the Labor force
400
What does commodity, representative, and fiat mean in terms of money.
Commodity -> Necessity's being traded.
Representative -> Gold standard (represents)
Fiat -> "fake" everyone agrees it means a certain thing ($1 dollar bill = to a dollar value)
400
What influencer on TikTok has made the most money this year?
Charli D'Amelio. Estimated Earnings: $17.5m
500
Difference between nominal and real GDP?
Nominal GDP does not adjust for inflation, Real does so it shows you the "real measure of growth" of a nations economy, not how much prices inflated which created the illusion of making more money.
500
How does the government control the business cycle?
Excess inventory: Those firms which had produced an abundance during the expansion phase face the problem of maintaining unsold items causing prices to fall.
- Surplus= prices falling
(I will have you do some ceiling and floor problems on the test, like the worksheet we did.)
500
What the difference between frictional and structural unemployment?
Frictional -> workers spend time searching for the jobs that best suit their skills and tastes. Short-term for most workers
Structural -> when there are fewer jobs than workers. Usually longer-term
500
What is easy money and tight money policy?
Easy money is to expand the economy by lowering interest rates, encouraging banks to lend money to consumers, discouraging saving, increasing the money supply; the only problem is that it increases inflation.
Tight money is to slow the economy by raising interest rates, cause inflation to slow, discourage borrowing, encourage saving, and restrict the money supply.
500
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