1. Sides Game
Macro One

2. Basket of Goods 2020 = $400 (base year) 2021 = $500 Inflation Rate =

3. Basket of Goods 2020 = $400 (base year) 2021 = $500 Inflation Rate = $ 500- $ 400 $400 Inflation Rate = 25%

4. Index Value 2020 = = 125 Nominal GDP 2020 = $20 trillion 2021 = $28 trillion Real GDP 2021 = $

5. Index Value 2020 = = 125 Nominal GDP 2020 = $20 trillion 2021 = $28 trillion Real GDP 2021 = $22.4 trillion

6. GDP Growth Rate Nominal 2020 = $20 trillion 2021 = $28 trillion Nominal Growth Rate?

7. GDP Growth Rate Nominal 2020 = $20 trillion 2021 = $28 trillion Nominal Growth Rate ($28-$20)/$20 = .4 40% nominal growth

8. GDP Growth Rate Real 2020 = $20 trillion 2021 = $22
GDP Growth Rate Real 2020 = $20 trillion 2021 = $22.4 trillion Real Growth Rate?

9. GDP Growth Rate Real 2020 = $20 trillion 2021 = $22
GDP Growth Rate Real 2020 = $20 trillion 2021 = $22.4 trillion Real Growth Rate? ($22.4-$20)/$20 = % real growth

10. Calculate Population = 10,000 Population 16+ = 8,000
Employed Persons = 5,000
Unemployed Persons = 350
Labor Force = ____________

11. Calculate Population = 10,000 Population 16+ = 8,000
Employed Persons = 5,000
Unemployed Persons = 350
Labor Force = 5,350

12. Calculate Population = 10,000 Population 16+ = 8,000
Employed Persons = 5,000
Unemployed Persons = 350
Unemployment Rate = ______________

13. Calculate Population = 10,000 Population 16+ = 8,000
Employed Persons = 5,000
Unemployed Persons = 350
Unemployment Rate = 6.54%

14. Calculate Population = 10,000 Population 16+ = 8,000
Employed Persons = 5,000
Unemployed Persons = 350
Labor Force Participation Rate = _______

15. Calculate Population = 10,000 Population 16+ = 8,000
Employed Persons = 5,000
Unemployed Persons = 350
Labor Force Participation Rate = 66.88%

16. Expansion

17. What is the GDP formula?

18. What is the largest component of US GDP?

19. Looking at National Income (income method of GDP), what is the largest component?
Rent + Wage + Profit + Interest

20. Give an example of an intermediate good.

21. Name two things that don’t count in GDP other than intermediate goods.

22. Where is residential housing counted in GDP?

23. Which component of GDP actually increased during the Great Recession?
C, I, or G

24. Specifically, what goes on the y-axis on a typical business cycle graph?

25. According to the circular flow model, who sells all 4 of the factors of production?

26. Give an example of a leakage from the circular flow model.
Hint
government
financial institutions
foreign countries

27. Give an example of an injection in the circular flow model.
Hint
government
financial institutions
foreign countries

28. Minimum age in labor force

29. Employed + Unemployed

30. Requirements to be unemployed

31. Loss of job due to technological advancements

32. Lack of job due to search process

33. Loss of job due to contraction

34. Trough

35. Natural Rate of Unemployment is the sum of these two unemployment types

36. Current Natural Rate estimate by Fed

37. Joes Pizza updated its signs with masking tape labels when flour prices jumped

38. “Fixed Basket” inflation based on prices paid by consumers

39. Inflation basket based on spending patterns (variable basket)

40. Cost of more trips to the bank during inflationary period

41. Inflation type- Decrease AS

42. Contraction with Inflation

43. Base Year Index Value

44. Who benefits from unanticipated inflation
Variable Rate Lender
Variable Rate Borrower
Fixed Rate Lender
Fixed Rate Borrower

45. Inflation caused by increase in AD?

46. Contraction length to reach recession

47. Current Unemployment Rate (January Jobs Report)

48. Peak

49. US GDP to nearest trillion

50. Decrease in Price Level

51. Real GDP