2. 100 200 300 400 500 3 GoalsNaked Economics Unemploy ment Misc. GDP 100 Inflation 200 300 400 500

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6. What are the 3 main Goals of Macroeconomics? A 100

7. 1.Full Employment (low unemployment) 2.Stable prices 3.Economic Growth A 100

8. What are the “optimal” rates for the following: 1.Full employment 2.Stable Prices 3.Economic Growth A 200

9. 1.Full employment- 95-96% employed (4-5% unemployed) 2.Stable Prices- 2% inflation 3.Economic Growth- 3.5% real GDP A 200

10. This is the value of all final goods and services produced inside a country’s borders within one year’s time. A 300

11. Gross Domestic Product (GDP) A 300

12. This is a sustained and continuous increase in the average of all prices over time. A 400

13. Inflation A 400

14. List the 3 problems with using GDP to measure economic growth. A 500

15. 1.It doesn’t measure non-market or illegal activities, like drug dealing and babysitting 2.It doesn’t measure well-being and quality of life 3.Negative outcomes, such as economic depletion, are rewarded A 500

16. B 100 $100 in $1 dollar bills is used to explain this distinction in GDP

17. Real GDP adjusted for inflation instead of nominal GDP B 100

18. Most accurate comparative measure of economic wealth India vs. Israel B 200

19. Per Capita GDP B 200

20. 13 minutes B 300

21. The time it takes to “earn” the value of a chicken today B 300

22. GDP + Life expectancy + literacy + educational attainment B 400

23. Human Development Index created by UN B 400

24. B 500 Country ranked 1 st by Human Development Index

25. Norway Next Australia and Iceland US ranked 13 B 500

26. Total number of people employed or seeking employment in a region C 100

27. Labor Force C 100

28. Workers who are moving between jobs, careers and locations– Temporary Unemployment C 200

29. Frictional Unemployment C 200

30. Not enough demand to employ all those who want to work C 300

31. Cyclical Unemployment C 300

32. DAILY DOUBLE C 400 DAILY DOUBLE Place A Wager

33. Workers have permanently lost their jobs in a certain industry because the skills are obsolete C 400

34. Structural Unemployment C 400

35. Structural unemployment + Frictional Unemployment = C 500

36. Natural Rate of Unemployment C 500

37. Proportion of total non- institutionalized civilian population 16 years of age and over in the civilian labor force D 100

38. Labor Force Participation Rate D 100

39. Negative economic growth for a period of a least 6 months is this. D 200

40. A Recession D 200

41. Workers who “drop out” of the Labor Force D 300

42. Discouraged Workers D 300

43. 3 Reasons for decline in Labor Force Participation Rate D 400

44. More people in jails, hospitals, treatment centers. More people in military/gov jobs Boomers retiring/teens entering college D 400

45. Impact of Decrease in Labor Force on Productions Possibilities Curve D 500

46. Shift Left-- Inward D 500

47. Tires sold to Big O vs. Tires Sold to Ford E 100

48. Final vs. Intermediate Goods Only Final Goods Produced– count in GDP E 100

49. Upward slope in Business Cycle Graph E 200

50. Expansionary Cycle E 200

51. Lowest point in Business Cycle Graph E 300

52. Trough E 300

53. Downward slope in Business Cycle Graph E 400

54. Contractionary Cycle E 400

55. Real GDP = C+I+G+(X-M) E 500

56. Real GDP = Consumption + Investment + Government Purchases + Net Exports E 500

57. If Price Level is the Balloon, Inflation is the F 100

58. The Flame F 100

59. The Rate at Which Price Level Rises. F200

60. Inflation F 200

61. When the inflation rate rises at a rate that has been incorrectly forcasted F300

62. Unanticipated Inflation F300

63. Reasons debtors and governments running deficits ---win with a rise in unanticipated inflation F 400

64. Dollars repaid over time are worth less in terms of purchasing power F 400

65. Savers, Retirees, Creditors, Variable Rate Mortgage Holders, long term Bond Holders F500

66. Purchasing power is less than when money was first stashed awayPurchasing power is less than when money was first stashed away Banks lending money, that is worth more in 10 years than original contract amountBanks lending money, that is worth more in 10 years than original contract amount Real rate of return is less F500

67. Final Jeopardy Define Consumer Price Index and explain it’s usesDefine Consumer Price Index and explain it’s uses

68. CPI measures changes in the price level of consumer goods and services purchased by households.consumer goods and services purchased by households. a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.market basket of consumer goods and services. The annual percentage change in a CPI is used as a measure of inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values. inflation. A CPI can be used to index (i.e., adjust for the effect of inflation) the real value of wages, salaries, pensions, for regulating prices and for deflating monetary magnitudes to show changes in real values.