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Econ 1-5 Macroeconomics

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Econ 1-5 Macroeconomics

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STANDARD:
E.5.1 Explain measures of a country's economic performance such as gross domestic product (GDP), unemployment, and inflation. (E)
E.5.2 Explain the limitations of using GDP to measure economic welfare. Compare the different types of GDP and (nominal, per capita, real) explain the strengths and limitations of each.
E.5.3 Identify the different causes of inflation (i.e., cost-push and demand-pull), and explain the impact of inflation on economic decisions. (E)
E.5.4 Explain the causes and effects of business cycles in a market economy.
E.5.5 Explain frictional, structural, cyclical, and seasonal unemployment, and analyze the impact of unemployment.

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Lance Hiles
Lance Hiles
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Econ 1-5 Macroeconomics
 

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Econ 1-5 MacroeconomicsOnline version

STANDARD: E.5.1 Explain measures of a country's economic performance such as gross domestic product (GDP), unemployment, and inflation. (E) E.5.2 Explain the limitations of using GDP to measure economic welfare. Compare the different types of GDP and (nominal, per capita, real) explain the strengths and limitations of each. E.5.3 Identify the different causes of inflation (i.e., cost-push and demand-pull), and explain the impact of inflation on economic decisions. (E) E.5.4 Explain the causes and effects of business cycles in a market economy. E.5.5 Explain frictional, structural, cyclical, and seasonal unemployment, and analyze the impact of unemployment.

by Lance Hiles
1

Macroeconomists study the big stuff, like economic output, unemployment, inflation, interest rates, and government policies. Macroeconomics is the study of the _____ _____ .

  
  
2

When the economy enters a recession, some argue that the government should cut taxes & spend more. A negative consequence to this response is _____ . However, some economists do not believe [same] is a big deal.

3

It wasn't until the ____ ____ that economists fully appreciated the need for a systematic way to measure the economy, and that we need theories to guide policies and fix problems. Macroeconomics is a relatively new subject.

     
  
  
4

There are 4 sources of revenue that drive any economy. The largest source of revenue in America is ____ ____ , but in other countries it could be government spending, exports, or business spending.

  
  
5

Macroeconomists make predictions based on data & history, but in the end they're just predictions. So how can this science be so subjective? Like all the social sciences, economics is studying ____ , and it turns out [same] are unpredictable.

6

The economy cycles between growing & shrinking. When prices rise & buyers stop buying & owners lay off workers (which leads to more people not buying), this is called a ____ of the economy.

7

The government has 3 economic goals: keep the economy growing, limit ____ , and keep prices ____ . When these things happen, citizens are happy & politicians get reelected.

  
  
8

The economy cycles between growing & shrinking. When businesses are making everything they can, and most people have jobs and are spending, prices rise due to limited supply & high demand, which causes inflation. This is economic ____ .

9

The most important measure of an economy is ____ ____ ____ or GDP. GDP is the value of all final goods and services produced within a country's border in a specific period of time, usually a year.

     
  
  
10

A ____ ____ is when the economy cycles between growing and shrinking. We can determine if the economy is growing or shrinking by looking at inflation, unemployment, and GDP.

  
  
11

We analyze the Gross Domestic Product in terms of ____ , & not raw number, because using raw numbers would make a country that produced five million thumbtacks look just as productive as a country that produced five million cars.

12

____ is when prices fall quickly, and ____ is when prices rise quickly. The government wants to keep prices stable and avoid both. Otherwise, people stop spending and the economy slows down.

  
  
13

A ____ is not just when the economy is bad. Officially, a [same] cannot happen until there is a decrease in real GDP for two successive quarters, or six months.

14

When most people have jobs and are spending, the gross domestic product increases. However, when most people lose their jobs and stop spending, the GDP decreases. Thus, the unemployment rate & GDP are related ____ .

15

After the Great Depression, there was a growing role for government in the economy & a need for economic measures. Thus, GDP was invented to account for ____ ____ .

  
  
16

The government strives to remove ____ unemployment, which means people lose their jobs because the economy is shrinking. e.g. fewer people are buying, so owners fire workers, who now cannot buy stuff, which causes more owners to fire workers, etc...

17

1 of the 3 big issues for macroeconomics is _____ , which the government tries to limit by making policies. This is measured with the [same] rate. In Greece, the rate is over 25%. In America during the Great Depression, the rate was also 25%.

18

Willy Wonka: When Charlie Bucket's father is replaced by a machine that screwed the lid on toothpaste tubes, Charlie's father was suffering from ____ unemployment, or losing a job because there is no demand for that job in the market.

19

Unemployment rate is calculated by taking the number of people that are unemployed and dividing by the number of people in the labor force, times 100. This represents the number of people that are ____ for a ____ , but can't find one.

  
  
20

If you are a teenager who just started looking for a summer work, or an adult who just quit your job in order to find a less stressful one, you are suffering from ____ unemployment.

 
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