GDPGDP

Components

Unemployment

Monetary Policy

Fiscal Policy

10 10 10 10 10

20 20 20 20 20

30 30 30 30 30

40 40 40 40 40

50 50 50 50 50

Question 1 - 10

• Define GDP

Answer 1 – 10

• Within borders, one year, final goods and services

Question 1 - 20

• How often is GDP measured?

Answer 1 – 20

• Annually

Question 1 - 30

• A graph that captures the GDP or the GDP growth rate of a country at various times throughout a period of years is a ___ cycle graph.

Answer 1 – 30

• Business

Question 1 - 40

• Which of the following is a true statement? A. Constant dollar GDP = Nominal GDPB. Constant dollar GDP = Real GDPC. Current dollar GDP = Real GDPD. Current dollar GDP = Constant dollar GDP always

Answer 1 – 40

• B

Question 1 - 50

• When comparing the GDP of different years in order to analyze the real growth of output, it is best to use _____ dollars.

Answer 1 – 50

• Constant, unchanging.

Question 2 - 10

• The largest component of GDP is ____

Answer 2 – 10

• consumption

Question 2 - 20

• Gwen Stacy buys a pair of shoes from Kohl’s. What part of GDP would this be considered?

Answer 2 – 20

• Consumption

Question 2 - 30

• Tony Stark has bills to pay for business expenses. What part of GDP would this be?

Answer 2 – 30

• Investment

Question 2 - 40

• Japan sends the U.S. a bunch of brand new Honda vehicles. What part of GDP would this be?

Answer 2 – 40

• Net Export

Question 2 - 50

• The City of Yuma builds a new city hall. What component of GDP would this be?

Answer 2 – 50

• Government Spending

Question 3 - 10

• A decline in our economy causes Topanga to lose her job at MacDonald’s. What kind of unemployment would this be?

Answer 3 – 10

• Cyclical

Question 3 - 20

• CJ Parker is a lifeguard at a beach in Indiana. Come Labor Day, CJ is out of work. What kind of unemployment would this be?

Answer 3 – 20

• Seasonal

Question 3 - 30

• More people are using the self-check at Wal Mart and Fry’s. This has put a number of cashiers out of work. What kind of unemployment is this?

Answer 3 – 30

• Structural

Question 3 - 40

• Mr. Martinez graduated from the University of Southern Indiana in May 2013. As a result, Mr. Martinez lost his position as a Resident Assistant (RA) with the university. Mr. Martinez was unemployed for a few weeks before being hired as an Economics teacher in the Yuma Union High School District. During those few weeks, Mr. Martinez was considered _____ unemployed.

Answer 3 – 40

• Frictionally

Question 3 - 50

• What are some labor force requirements?

Answer 3 – 50

• 16-years-old• Not in jail• Not a full time student.• You need to be looking for work.• You cannot give up on finding a job.

Question 4 - 10

• What is a discount loan?

Answer 4 – 10

• Loans from the Fed to people at discounted prices.

Question 4 - 20

• What is the main monetary policy tool?

Answer 4 – 20

• Open Market Operations

Question 4 - 30

• What would happen to the money supply if the reserve requirement increased?

Answer 4 – 30

• Money supply decreases.

Question 4 - 40

• When bank reserves increase, what happens to Fed Funds Rate?

Answer 4 – 40

• Increases

Question 4 - 50

• What are the functions of money?

Answer 4 – 50

• medium of exchange, measure of value, and store of value

Question 5 - 10

• If Fiscal Policy is trying to close a recessionary gap, what type of fiscal policy is it?

Answer 5 – 10

• Expansionary

Question 5 - 20

• If the economy is in an inflationary period, would Fiscal Policy increase OR decrease taxes?

Answer 5 – 20

• Increase

Question 5 - 30

• What does “Crowding Out” mean?

Answer 5 – 30

• Government borrowing money and driving up interest rates.

Question 5 - 40

• What are the 4 types of lags in Fiscal Policy?

Answer 5 – 40

• Information Lag, Implementation Lag, Recognition Lag, Decision Lag

Question 5 - 50

• What is the Federal Reserves most visible function?

Answer 5 – 50

• Check clearing