Slide 1 Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome BackgroundsCommunication! Macro Policy
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Communication Game Board Inflation Un- employment Economic Instability The Fed Macro-Policy Final Challenge Final Challenge
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 1 for 100 An increase in the general price level. Inflation
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 1 for 200 Intense form of inflation that can go as high as % per year. Galloping Inflation
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 1 for 300 A decrease in general price level deflation
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 1 for 400 Inflation in the range of 500% a year and above Hyperinflation
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 1 for 500 Inflation in the range of 1-3% per year Creeping Inflation
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 2 for 100 Number of unemployed persons divided by the total number of persons in the civilian labor force Unemployment rate
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 2 for 200 Results from changes in the weather or changes in the demand for certain products Seasonal unemployment
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 2 for 300 Unemployment directly related to swings in the business cycle Cyclical Unemployment
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 2 for 400 Unemployment caused by workers who are “between jobs” Frictional Unemployment
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 2 for 500 Occurs when a fundamental change in the operations of the economy reduces the demand for workers and their skills Structural Unemployment
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 3 for 100 Period of stagnant growth combined with inflation Stagflation
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 3 for 200 The difference between the actual GDP and the potential GDP that could be produced if all resources were fully employed. GDP Gap
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 3 for 300 Sum of the monthly inflation and unemployment Misery Index
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 3 for 400 Price of economic failures that waste the resources of the nation and its people Economic costs
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 3 for 500 Price of economic instability in human terms. Includes an increase in crime during recessions. Social Costs
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 4 for 100 Where is the closest Federal reserve? Kansas City
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 4 for 200 Who is the current head of the Fed? Ben Bernanke
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 4 for 300 Who owns the Fed? Member Banks
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 4 for 400 The Fed is responsible for all of the following EXCEPT: Regulating holding companies, supervising foreign banks in the US, Approving bank mergers, Regulating credit unions Regulating Credit Unions
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 4 for 500 The Fed has to choose between these two tactics in monetary policy Monetizing the debt and interest rates
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 5 for 100 The intersection of aggregate supply and aggregate demand Macroeconomic Equilibrium
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 5 for 200 All of the following increase aggregate supply except: Increase in labor productivity, increase in interest rates, development of new tech, decrease in gov. regulation Increase in interest rates
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 5 for 300 His macro policies were a driving force in economics in the 20 th century. Keynes
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 5 for 400 This type of person believes that increasing the money supply is a temporary solution that does not affect unemployment. Monetarist
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Category 5 for 500 Those who favor supply-side policy favor an expanded or a reduced role of the government in the economy. Reduced
Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome Backgrounds Game Board Game Board Reset Scores Final Challenge! The policy that favored reducing taxes in hopes of increasing the amount of taxing returning to the government. Also include the president that put this policy in place. Laffer Curve or Trickle down economics Write Your Final Challenge Wager