1. The Indicators Game

2. ?

4. Bonus

5. ?

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

7. ?

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

9. ?

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

12. 2M

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

14. ?

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

16. ?

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

18. ?

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

21. 3L

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

23. ?

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

25. ?

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

27. ?

28. What is the Natural Rate of Unemployment?
4.5 %

29. ?

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

31. ?

33. 5m

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

35. ?

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

37. ?

38. 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

39. ?

40. 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

42. 6r

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

44. ?

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

46. ?

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

48. ?

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

51. 1R

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

53. ?

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

55. ?

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

57. ?

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

59. ?

60. 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)

61. ?

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

64. 7L

65. 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)

66. Last ?

67. 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