Welcome to... A Game of X’s and O’s

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Scoreboard X O Click Here if X Wins Click Here if O Wins

1 Define GDP

1 Dollar value of all final g/s made in a nation in a year. Home

2 What is frictional unemployment?

2 When you are between jobs

3 What part of GDP increases when a new factory is built?

3 Investment (business)

4 Who controls the money supply in the US?

4 The Federal Reserve

5 Give an example of an action during a tight money policy. During what phase of the business cycle would this occur?

5 Issuing less money, selling bonds to public, increase interest rate, increase discount rate. This would occur during rapid expansion

6 What does “aggregate” supply and demand refer to?

6 Total supply and demand for an economy

7 What type of tax system takes a constant % of income from all people? Give an example.

7 Proportional (social security& medicare = FICA)

8 What 2 tools are used in the fiscal policy?

8 Government spending and taxes

9 If the federal government is attempting to encourage spending by consumers, what type of fiscal policy would be best? What phase of the business cycle would this occur during?

9 Expansionary (decrease taxes). It would occur during a contraction.