The Indicators Game

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Bonus

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What is the unemployment rate? Population 1000 adults Employed – 700 Unemployed- 50 What is the unemployment rate? Unemployed ---------------------------------------------------- x 100 = 6.7 labor force (Unemployed + employed)

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Gross Domestic Product What does G.D.P. stand for? Gross Domestic Product

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Bonus: If an economy is experience 2 consecutive quarters of contraction, the economy is said to be in a . . . Recession

2M

Gross Domestic Product What does G.D.P. stand for? Gross Domestic Product

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Inflation Too much money chasing too few goods Purchasing power of money drops Prices rise Are all description of what situation? Inflation

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Bonus: During expansion What happen to GDP, unemployment rate, and price level? GDP increases, unemployment rate falls, Price Level rises.

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Harry retired from the post office. Is Harry unemployed? No- he has left the labor force.

3L

Bonus: During expansion What happen to GDP, unemployment rate, and price level? GDP increases, unemployment rate falls, Price Level rises.

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George is a full time student at Penn State. Is George part of the labor force? No- full time student.

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Sally quit her job to look for a better job. What category of unemployed does Sally fall under? Frictional

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What is the Natural Rate of Unemployment? 4.5 %

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Unemployment due to economic downturn is called. . . Cyclical or Keynesian unemployment

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5m

Sally quit her job to look for a better job. What category of unemployed does Sally fall under? Frictional

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What is real GDP per capita? GDP divided by the population

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Why do some argument that the unemployment rate is an underestimation of the problem? Doesn’t count involuntary part time or discouraged workers who quit looking

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Larry is a landscaper who works in the spring, summer, and fall Larry is a landscaper who works in the spring, summer, and fall. He doesn’t work in the winter and instead collects unemployment. What type of unemployed worker is Larry? Seasonal

6r

What is real GDP per capita? GDP divided by the population

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Bonus: When GDP falls, unemployment rises, and price level rises, we are experiencing a period of . . . Stagflation

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Who is hurt by inflation the most? Savers, Lenders, Those on fixed incomes, and when wages don’t adjust.

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What is real GDP? GDP adjusted for price change or inflation

1R

Bonus: When GDP falls, unemployment rises, and price level rises, we are experiencing a period of . . . Stagflation

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Who a toy built in China be included on our GDP? Why or why not? Foreign goods

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Is the flour used in the making bread counted toward the GDP? Is so why? If not why not? No- intermediate goods

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Is the salary of the President counted toward GDP? Why or why not? Yes Government Spending

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Using the correct terms what four factors are calculated to determine a nation’s GDP? C- Consumer Spending G- Government Spending I- Business investment NX- net exports (exports- imports)

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How do we measure inflation? Consumer Price Index (CPI) The market basket

7L

Using the correct terms what four factors are calculated to determine a nation’s GDP? C- Consumer Spending G- Government Spending I- Business investment NX- net exports (exports- imports)

Last ?

John’s job has been replaced by Easy Pass John’s job has been replaced by Easy Pass. What type of unemployment is John Experiencing? Structural