Unit 3 part 1 standards questions

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1) Illustrate the means by which economic activity is measured.
a. How do the decisions of households, businesses, and the
government affect overall income, employment, and prices?
b1. Define Gross Domestic Product (GDP)
b2. define economic growth
c1. How is economic growth measured?
b3. define unemployment
c3. How is unemployment measured?
d. Identify and give an example of structural, cyclical, and frictional
unemployment.
b5. define inflation
c2. How is inflation measured?
b4. define Consumer Price Index (CPI)
b6. define stagflation
a. Give examples of who benefits and who loses from inflation.
b7. define aggregate supply
b8. define aggregate demand
e. Label and Define the business cycle: peak, contraction, trough,
recovery, expansion, recession and depression.
MACROECONOMICS PART 2
2) Explain the role and functions of the Federal Reserve System.
a. How is the Federal Reserve System organized?
b1. Define monetary policy.
b2. What are the 2 types of policies and when are they used?
c. What tools does the Federal Reserve use to promote price stability,
full employment, and economic growth?
3) Explain how the Government uses fiscal policy to promote price stability, full employment, and economic growth.
a. Define fiscal policy.
a2. What are the 2 types of policies and when are they used?
b. Explain the tools the government uses to influence the economy.
f. What is the difference between the national debt and deficit
4) Explain how changes in monetary and fiscal policy can have an impact on our choices to spend and save.
b1. Define and give an example of progressive tax.
b2. Define and give an example of regressive tax
b3. Define and give an example of proportional tax.
c. How does an increase in sales tax affect different income groups?
(ex. Rich and poor?)