Download UNIT 3 Measuring Economic Performance EQs and Vocab C.h 12

UNIT 3 Measuring Economic Performance EQs and Vocab C.h 12, 13, & 16) NAME:__________________________________
SSEMA1: The student will illustrate the means by which economic activity is measured.
SSEMA3: The student will explain how the government uses fiscal policy to promote price stability, full employment and economic growth. (Ch 12 & 13)
SSEMA2: The student will explain the role and functions of the Federal Reserve System. (Ch 16)
Chapter 12:
1. Gross Domestic
Product (GDP)
2. Intermediate Goods
3. Nominal GDP
4. Real GDP
5. Price Level
6. Aggregate Supply
7. Aggregate Demand
8. Business Cycle
9. Economic Growth
10. Expansion
11. Contraction
12. Peak
13. Trough
14. Recession
15. Depression
16. Stagflation
17. Capital Deepening
Chapter 13:
18. Frictional
Unemployment
19. Seasonal
Unemployment
20. Structural
Unemployment
21. Cyclical
Unemployment
Provide your example in this column. (Listen in class!)
Provide a “Tweet” definition in this column. (<140 letters)
UNIT 3 Measuring Economic Performance EQs and Vocab C.h 12, 13, & 16) NAME:__________________________________
22. Full Employment
23. Underemployment
24. Discouraged Worker
25. Inflation
26. Purchasing Power
27. Price Index
28. Consumer Price Index
29. Market Basket
30. Inflation Rate
31. Core Inflation Rate
32. Hyperinflation
33. Wage-Price Spiral
Chapter 16:
34. The Federal Reserve
35. Discount Rate
36. Board of Governors
37. Federal Reserve
Districts
38. Money Creation
39. Required Reserve
Ratio
40. Prime Rate
41. Inside Lag
42. Outside Lag
E?s
Element: SSEMA1.b
Define Gross Domestic Product (GDP),
economic growth, unemployment,
Consumer Price Index (CPI), inflation,
stagflation and aggregate supply and
aggregate demand.
You need to answer each question correctly for credit. This is your STUDY GUIDE.
G
D
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UNIT 3 Measuring Economic Performance EQs and Vocab C.h 12, 13, & 16) NAME:__________________________________
1.
Write out and explain the
formula for GDP.
2.
How does aggregate
supply and aggregate
demand influence the
GDP?
3.
When imports increase,
why does the GDP
decline?
Formula:
4.
The GDP of a country
was $325,000 in 2005. In
2006 it was $330,000 did
the country’s GPD
actually rise?
EXPLAIN!
Element: SSEMA1.b
Define economic growth.
Element: SSEMA1.e
Define the stages of the business cycle as
well as recession and depression.
Element: SSEMA1.c
Explain how economic growth, inflation
and unemployment are calculated.
5.
6.
What are the 4 phases of the
business cycle?
6. Label recession and depression
on the business cycle.
1-
3-
7. What is stagflation?
2-
4-
8. How do you determine is the
nation is in a recession or a
depression?
Ch 12 Sect 3:
9. How is economic growth
measured?
Element: SSEMA1.a
Explain that overall levels of income,
employment and prices are determined by
the spending and production decisions of
households, businesses, government and net
exports.
10. How does YOU saving and
investing relate to economic
growth?
UNIT 3 Measuring Economic Performance EQs and Vocab C.h 12, 13, & 16) NAME:__________________________________
11. 11. How does capital deepening
contribute to economic growth?
12.
13. 12. What role does population
growth, government and foreign
trade have on economic growth?
Element: SSEMA1.b
Define… , unemployment.
Element: SSEMA1.c
Explain how economic growth, inflation
and unemployment are calculated.
Ch 13 Sect 1:
14. What is “unemployment”?
15. 14. How is full employment
measured?
16. 15. Why does full employment
mean that every worker is NOT
employed?
17. 16. If there is excessive inflation,
what might the government do
according to fiscal policy?
Element: SSEMA1.d
Identify structural, cyclical and frictional
unemployment.
17. Why is unemployment bad for
the economy?
18. What are the 5 causes of
structural unemployment?
1.
2.
3.
4.
5.
19. How could you avoid being
structurally unemployed?
20. What is cyclical
unemployment?
21. Why is cyclical
unemployment so challenging
to improve?
UNIT 3 Measuring Economic Performance EQs and Vocab C.h 12, 13, & 16) NAME:__________________________________
22. What is frictional
unemployment?
23. What is “underemployment”?
24. Bob is fired from his job. He
looks for a job for 8 months
and then gives up. Does Bob
count as “unemployed”?
EXPLAIN.
25. Explain, using an example, the
wage price spiral.
Element: SSEMA1.b
Define…Consumer Price Index (CPI),…
inflation.
26. What is CPI? What does CPI
measure?
27. How are price indexes used to
compare changes in prices
over time?
28. Define inflation.
29. Identify the causes and effects
of inflation.
Causes
Effects
30. Beyonce got a 3.5% raise last
year. Interestingly enough
inflation was 3.5% last year
too. How much of a raise did
Beyonce really get?
Element: SSEMA2.a
Describe the organization of the Federal
Reserve System.
31. What is the Fed?
32. What is the role of the Board
of Governors? How long do
they serve?
UNIT 3 Measuring Economic Performance EQs and Vocab C.h 12, 13, & 16) NAME:__________________________________
33. What do the 12 District
Reserve Banks do?
34. How does the Federal Reserve
serve the government?
35. What are depository
institutions?
Element: SSEMA2.b
Define Monetary policy.
36. What is “monetary policy”
37. How does a bank make a
profit? Illustrate your answer.
38. How do banks create money?
39. What is the reserve rate? And
why is it rarely adjusted?
40. What is the difference
between inside & outside lag?
Element: SSEMA2.c
Describe how the Federal Reserve uses the
tools of monetary policy to promote price
stability, full employment and economic
growth.
41. How does the Fed serve the
federal government?
42. How does the Fed serve
banks?
43. How does the Fed regulate the
money supply? TOOLS
NOTES:
BANK Blackmon