Download Economics Unit 4 – Macroeconomics (Policies) Chapters 13, 14, 15

Economics Unit 4 – Macroeconomics (Policies) Chapters 13, 14, 15 & 16 Assignment: Students must complete the study guide and turn it in for credit on the day that the unit test is given, but students would benefit greatly from completing, and then studying the study guide. Students will complete their work on a separate sheet (or sheets) of paper. The final copy of the student work should be neat, legible, and thorough. The unit exam will be very closely related to material found in the study guide, so excellence is within the reach of every student. Identification: Identify the significance of the following terms. 1. Gross Domestic Product (GDP) 10. Unemployment Rate 19. Tight Money Policy 2. Inflation 11. Frictional Unemployment 20. Discount Rate 3. Consumer Price Index 12. Structural Unemployment 21. Prime Rate 4. Business Cycle 13. Cyclical Unemployment 22. Fiscal Policy 5. Recession 14. Seasonal Unemployment 23. Keynesian Economics 6. Peak 15. Deflation 24. Supply‐Side Economics 7. Trough 16. Hyperinflation 25. Monetarism 8. Depression 17. Monetary Policy 9. Unemployment 18. Easy Money Policy Short answer: Answer each of the following questions in about 3 to 5 complete sentences. If the question has more than one part, be sure to answer all parts of the question. 1. Explain the importance of GDP. 2. Explain how the Great Depression compared to other recessionary periods. 3. Describe how the government collects monthly data on employment. 4. Explain the difference between depressions and recessions. 5. Describe five ways inflation destabilizes the economy. 6. Explain how the unemployment rate is computed. 7. Describe the structure of the Fed. 8. What is the purpose of monetary policy? 9. Describe the three major tools of monetary policy. 10. Describe the social cost of instability. 11. Identify the main assumptions of supply‐side policies. 12. Explain how monetary policy can sometimes conflict with economic policy.