GDP
GDP
Unemploy
Componen
ment
ts
Monetary
Policy
Fiscal
Policy
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Question 1 - 10
• Define GDP
Answer 1 – 10
• Within borders, one year, final goods and
services
Question 1 - 20
• How often is GDP measured?
Answer 1 – 20
• Annually
Question 1 - 30
• A graph that captures the GDP or the GDP
growth rate of a country at various times
throughout a period of years is a ___ cycle
graph.
Answer 1 – 30
• Business
Question 1 - 40
• Which of the following is a true statement?
A. Constant dollar GDP = Nominal GDP
B. Constant dollar GDP = Real GDP
C. Current dollar GDP = Real GDP
D. Current dollar GDP = Constant dollar GDP
always
Answer 1 – 40
• B
Question 1 - 50
• When comparing the GDP of different years in
order to analyze the real growth of output, it
is best to use _____ dollars.
Answer 1 – 50
• Constant, unchanging.
Question 2 - 10
• The largest component of GDP is ____
Answer 2 – 10
• consumption
Question 2 - 20
• Gwen Stacy buys a pair of shoes from Kohl’s.
What part of GDP would this be considered?
Answer 2 – 20
• Consumption
Question 2 - 30
• Tony Stark has bills to pay for business
expenses. What part of GDP would this be?
Answer 2 – 30
• Investment
Question 2 - 40
• Japan sends the U.S. a bunch of brand new
Honda vehicles. What part of GDP would this
be?
Answer 2 – 40
• Net Export
Question 2 - 50
• The City of Yuma builds a new city hall. What
component of GDP would this be?
Answer 2 – 50
• Government Spending
Question 3 - 10
• A decline in our economy causes Topanga to
lose her job at MacDonald’s. What kind of
unemployment would this be?
Answer 3 – 10
• Cyclical
Question 3 - 20
• CJ Parker is a lifeguard at a beach in Indiana.
Come Labor Day, CJ is out of work. What kind
of unemployment would this be?
Answer 3 – 20
• Seasonal
Question 3 - 30
• More people are using the self-check at Wal
Mart and Fry’s. This has put a number of
cashiers out of work. What kind of
unemployment is this?
Answer 3 – 30
• Structural
Question 3 - 40
• Mr. Martinez graduated from the University of
Southern Indiana in May 2013. As a result, Mr.
Martinez lost his position as a Resident
Assistant (RA) with the university. Mr.
Martinez was unemployed for a few weeks
before being hired as an Economics teacher in
the Yuma Union High School District. During
those few weeks, Mr. Martinez was
considered _____ unemployed.
Answer 3 – 40
• Frictionally
Question 3 - 50
• What are some labor force requirements?
Answer 3 – 50
•
•
•
•
•
16-years-old
Not in jail
Not a full time student.
You need to be looking for work.
You cannot give up on finding a job.
Question 4 - 10
• What is a discount loan?
Answer 4 – 10
• Loans from the Fed to people at discounted
prices.
Question 4 - 20
• What is the main monetary policy tool?
Answer 4 – 20
• Open Market Operations
Question 4 - 30
• What would happen to the money supply if
the reserve requirement increased?
Answer 4 – 30
• Money supply decreases.
Question 4 - 40
• When bank reserves increase, what happens
to Fed Funds Rate?
Answer 4 – 40
• Increases
Question 4 - 50
• What are the functions of money?
Answer 4 – 50
• medium of exchange, measure of value, and
store of value
Question 5 - 10
• If Fiscal Policy is trying to close a recessionary
gap, what type of fiscal policy is it?
Answer 5 – 10
• Expansionary
Question 5 - 20
• If the economy is in an inflationary period,
would Fiscal Policy increase OR decrease
taxes?
Answer 5 – 20
• Increase
Question 5 - 30
• What does “Crowding Out” mean?
Answer 5 – 30
• Government borrowing money and driving up
interest rates.
Question 5 - 40
• What are the 4 types of lags in Fiscal Policy?
Answer 5 – 40
• Information Lag, Implementation Lag,
Recognition Lag, Decision Lag
Question 5 - 50
• What is the Federal Reserves most visible
function?
Answer 5 – 50
• Check clearing