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With Host... Your
Crisis of Credit. GDPBusiness Cycle Unemploy ment Inflation Indicators
What does “Leverage” mean? A 100
To borrow money in order to make a larger business deal A 100
What is a mortgage? A 200
A loan on a house or a piece of land A 200
Why did banks make loans to people with bad credit? A 300
Because the value of houses traditionally increases over time. A 300
What are two things that occurred after the Fed reduces interest rates following 9/11? A 400
1.More loans occurred because the cost was so low. 2.Fewer people put money into banks because of low interest rates. A 400
What occurred to the value of houses when people began to default (not pay back their loans)? A 500
The value of houses decreased and banks came near bankruptcy. A 500
For what does GDP stand? B 100
Gross Domestic Product B 100
What is the definition of GDP? B 200
The dollar value of all goods and services produced in the United States in a given year. B 200
Would a used car be included in GDP? B 300
No, the item is used, not new B 300
If GDP is increasing, what phase of the business cycle are you most likely in? B 400
Expansion B 400
Would a Ford car made in Canada be included in this year’s GDP? B 500
No – made outside the US B 500
What are the four phases of the Business Cycle? C 100
Expansion, peak, contraction/recession, trough C 100
Increased employment and increased consumer spending is associated with which phase? C 200
Expansion C 200
Increasing unemployment and reduced consumer spending is associated with which phase? C 300
Contraction C 300
DAILY DOUBLE C 400 DAILY DOUBLE Place A Wager
Frictional Unemployment is most likely to occur during which phase? C 400
Expansion or peak – either phase is correct C 400
Inflation is most likely to occur during which phase? C 500
Expansion or peak – both answers are correct C 500
In order to be unemployed you must be… D 100
Actively looking for work D 100
In the United States, what level of unemployment is considered “full employment?” D 200
3% or 4% either answer is correct. D 200
What type of unemployment occurs when you lose your job due to a recession? D 300
Cyclical – as in the business cycle. D 300
What name is given to people who have given up looking for work? D 400
Discouraged D 400
What name is given to unemployment that occurs when your job is no longer needed by the economy? D 500
Structural D 500
What is the definition of inflation? E 100
A general increase in prices. E 100
On average, the United States experiences what level of inflation each year? E 200
3% E 200
What type of inflation occurs when too much money is created? E 300
Monetary or quantitative inflation E 300
What type of inflation occurs when the cost of production causes prices to rise? E 400
Cost-Push Inflation E 400
What type of inflation occurs when consumer demand is greater than the ability of the economy to produce items? E 500
Demand-Pull Inflation E 500
F 100 What are indicators?
Any piece of information that tells you what is occurring in the economy. F 100
What are the three categories of indicators? F 200
Leading, lagging, and concurrent. F 200
If the current month is June, what is an indicator from the month of August? F 300
Leading F 300
If the current month is June, what is an indicator from the month of May? F 400
Concurrent F 400
If the current month is June, what is an indicator from the month of February? F 500
Lagging F 500
The Final Jeopardy Category is: Gross Domestic Product Please record your wager. Click on screen to begin
Click on screen to continue What is the formula for the expenditure approach for calculating GDP?
C+B+G+(E-I) Click on screen to continue
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