Download Unit 2: Tracking the Macro Economy

AP Macro
Name:_________________________
Unit 2: Tracking the Macro Economy
Gwartney Textbook Ch. 7-8
Tuesday Sept. 20: What is GDP? How is GDP Calculated? Real vs. Nominal GDP?
What are the Problems with Measuring an Economy with GDP?
*Concepts: GDP, Intermediate Goods, Expenditure Approach, Income
Approach, Real GDP, Nominal GDP, Underground Economy, Quality of Life
*HW: WB Activity #12
Wednesday Sept. 21: Pass Back Unit 1 Tests- GDP Practice & Review
*Concepts: GDP Quiz
*HW: WB Activity 13
*Reading: Ch.8 (Business Cycles) Pg. 170-172
Thursday Sept. 22: What is a Business Cycle? How are Phases of the Business Cycle
Determined?
*Concepts: Business Cycle, Recession, Depression, Expansion, Contraction
*HW: WB Activity 17
*Reading: Ch. 8 (Unemployment) Pg.172-181
Friday, Sept. 23: What is the Labor Force? What are the Types of Unemployment?
How do we use the Unemployment Rate? How can the UE Rate help us reach our
Potential Output?
*Concepts: Labor Force, Unemployed, Unemployment Rate, Frictional
Unemployment, Structural Unemployment, Cyclical Unemployment, Full
Employment, Natural Rate of Employment, Potential Output
*HW: WB Activity #11 part A and #16
*Reading: *Reading: Ch. 7 (Price Indexes) 156-157
Monday, Sept. 26: What is the CPI, GDP Deflator? How are these used to track the
economy?
*Concepts: CPI, GDP Deflator, Inflation, % ch. Formula, Real GDP Formula
*HW: WB Activity #11 part B & C only
**Free Response Question #2
* Reading: Ch. 8 (Inflation) Pg.182-186
Tuesday, Sept. 27: What is Inflation? Effects of Inflation? Unanticipated vs.
Anticipated Inflation? What Causes Inflation?
*Concepts: Effects of Inflation, Anticipated Inflation, Unanticipated Inflation,
Causes of Inflation
*HW: WB Activity #14,15
*Reading: Review Ch. 7-8
Wednesday, Sept. 28: Test- Multiple Choice and Free Response
*Reading: Ch. 9 (Intro to Macro, Circular Flow Model, Four Key Markets)
WB. Act. 10
AP Macro
Name:_________________________
Unit 2: Tracking the Macroeconomy
Essential Questions:
1) What are the measures of national economic performance?
2) How can we measure the level of real performance in a country?
3) Explain how GDP measures welfare of the nation?
4) What are only final goods and services evaluated in deriving the GDP?
5) How can GDP understate a nation’s productivity?
6) What is the difference between nominal and real GDP?
7) Who is helped and who is harmed by inflation?
8) What is meant by unemployment?
9) What is the CPI?
10) How is the CPI constructed?
11) What is a GDP Deflator? How is the GDP Deflator used to understand the
distinctions between nominal and real GDP?
12) How are the economic shifts illustrated by an economist?
13) How is the labor force calculated?
14) How can fluctuations of the labor force impact the economic performance?
15) What is the relationship between unemployment and the business cycles?
16) What are the 3 types of unemployment?
17) Explain the difference between actual and potential GDP.
18) How is inflation calculated?
19) What are the effects of inflation?
20) What are the different types of inflation?
21) Explain the difference between unanticipated inflation vs. anticipated inflation.
Key Terms:
GDP:
Intermediate Goods:
Final Goods and
Services:
Expenditure Approach:
Personal Consumption:
Private Investment:
Depreciation:
Exports:
Imports:
Net Exports:
Transfer Payments:
Non-market
Transactions:
National Income:
Formulas:
CPI:
GDP Growth Rate
(percent change
formula):
Gross National Product:
Nominal GDP:
Real GDP:
Price Index:
Market Basket:
CPI:
GDP Deflator:
Inflation:
Business Cycle:
Recession:
Depression:
Expansion:
Recessionary Trough:
Contraction:
Business Peak:
Civilian Labor Force:
Unemployed:
GDP Deflator:
Labor Force:
Labor Force
Participation Rate:
Unemployment Rate:
Discouraged Worker:
Frictional
Unemployment:
Structural
Unemployment:
Cyclical Unemployment:
Full Employment:
Natural Rate of
Unemployment:
Potential Output:
Unanticipated Inflation:
Anticipated Inflation:
Inflation between 2
years (percent change
formula):
Real GDP: