Sides Game
Macro One
Expansion
In the US business cycle, which periods
are generally shorter?
What is the GDP formula?
What is the biggest component of
GDP?
Looking at National Income (income
method of GDP), what is the largest
component?
Time
Give an example of an intermediate
good.
Name two things that don’t count in
GDP other than intermediate goods.
Where is residential housing counted
in GDP?
Which component of GDP actually
increased during the Great Recession?
Specifically, what goes on the y-axis on
a typical business cycle graph?
According to the circular flow model,
who sells all 4 of the factors of
production?
Give an example of a leakage from the
circular flow model.
• Hint
– To government
– To financial institutions
– To foreign countries
Recovery
Minimum age in labor force
Employed + Unemployed
Requirements to be unemployed
“Working age” age range
Loss of job due to technological
advancements
Lack of job due to search process
Loss of job due to contraction
Trough
Natural Rate of Unemployment is the
sum of these two unemployment
types
Prosperity
Joes Pizza updated its signs with
masking tape labels when flour
prices jumped
“Fixed Basket” inflation based on price
received by seller
Inflation basket based on spending
patterns
Cost of more trips to the bank during
inflationary period
Inflation type- Decrease AS
Contraction with Inflation
Base Year Index Value
Who benefits from unanticipated
inflation
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Variable Rate Lender
Variable Rate Borrower
Fixed Rate Lender
Fixed Rate Borrower
Largest Share of Consumption
Spendning in US Economy
Inflation caused by increase in AD?
Contraction length to reach recession
Current Unemployment Rate
(December Jobs Report)
Peak
US GDP to nearest trillion
Decrease in Price Level
Real GDP