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5. 100 200 300 400 500 Crisis of Credit. GDPBusiness Cycle Unemploy ment Inflation Indicators

6. What does “Leverage” mean? A 100

7. To borrow money in order to make a larger business deal A 100

8. What is a mortgage? A 200

9. A loan on a house or a piece of land A 200

10. Why did banks make loans to people with bad credit? A 300

11. Because the value of houses traditionally increases over time. A 300

12. What are two things that occurred after the Fed reduces interest rates following 9/11? A 400

13. 1.More loans occurred because the cost was so low. 2.Fewer people put money into banks because of low interest rates. A 400

14. What occurred to the value of houses when people began to default (not pay back their loans)? A 500

15. The value of houses decreased and banks came near bankruptcy. A 500

16. For what does GDP stand? B 100

17. Gross Domestic Product B 100

18. What is the definition of GDP? B 200

19. The dollar value of all goods and services produced in the United States in a given year. B 200

20. Would a used car be included in GDP? B 300

21. No, the item is used, not new B 300

22. If GDP is increasing, what phase of the business cycle are you most likely in? B 400

23. Expansion B 400

24. Would a Ford car made in Canada be included in this year’s GDP? B 500

25. No – made outside the US B 500

26. What are the four phases of the Business Cycle? C 100

27. Expansion, peak, contraction/recession, trough C 100

28. Increased employment and increased consumer spending is associated with which phase? C 200

29. Expansion C 200

30. Increasing unemployment and reduced consumer spending is associated with which phase? C 300

31. Contraction C 300

32. DAILY DOUBLE C 400 DAILY DOUBLE Place A Wager

33. Frictional Unemployment is most likely to occur during which phase? C 400

34. Expansion or peak – either phase is correct C 400

35. Inflation is most likely to occur during which phase? C 500

36. Expansion or peak – both answers are correct C 500

37. In order to be unemployed you must be… D 100

38. Actively looking for work D 100

39. In the United States, what level of unemployment is considered “full employment?” D 200

40. 3% or 4% either answer is correct. D 200

41. What type of unemployment occurs when you lose your job due to a recession? D 300

42. Cyclical – as in the business cycle. D 300

43. What name is given to people who have given up looking for work? D 400

44. Discouraged D 400

45. What name is given to unemployment that occurs when your job is no longer needed by the economy? D 500

46. Structural D 500

47. What is the definition of inflation? E 100

48. A general increase in prices. E 100

49. On average, the United States experiences what level of inflation each year? E 200

50. 3% E 200

51. What type of inflation occurs when too much money is created? E 300

52. Monetary or quantitative inflation E 300

53. What type of inflation occurs when the cost of production causes prices to rise? E 400

54. Cost-Push Inflation E 400

55. What type of inflation occurs when consumer demand is greater than the ability of the economy to produce items? E 500

56. Demand-Pull Inflation E 500

57. F 100 What are indicators?

58. Any piece of information that tells you what is occurring in the economy. F 100

59. What are the three categories of indicators? F 200

60. Leading, lagging, and concurrent. F 200

61. If the current month is June, what is an indicator from the month of August? F 300

62. Leading F 300

63. If the current month is June, what is an indicator from the month of May? F 400

64. Concurrent F 400

65. If the current month is June, what is an indicator from the month of February? F 500

66. Lagging F 500

67. The Final Jeopardy Category is: Gross Domestic Product Please record your wager. Click on screen to begin

68. Click on screen to continue What is the formula for the expenditure approach for calculating GDP?

69. C+B+G+(E-I) Click on screen to continue

70. Thank You for Playing Jeopardy! Game Designed By C. Harr-MAIT