Download Macroeconomic Questions

Macroeconomic Questions
Why does output fluctuate?
What determines economic growth?
Why do we have unemployment, and why is unemployment a problem?
Why do we have inflation, and why is inflation a problem?
Which governmental policy affects output, growth, unemployment, and inflation?
How do changes in the amount of money in the economy affect output, growth,
unemployment and inflation?
How do domestic economic activities affect other counties and our trade?
Unit 2 : Macroeconomics
National Council on Economic Education
http://apeconomics.ncee.net
Real GDP 1952-2001
(in billions of 1996 dollars)
Unit 2 : Macroeconomics
National Council on Economic Education
http://apeconomics.ncee.net
Circular Flow
Unit 2 : Macroeconomics
National Council on Economic Education
http://apeconomics.ncee.net
Macroeconomic Goals
•Full Employment
•Price Stability
•Economic Growth
Unit 2 : Macroeconomics
National Council on Economic Education
http://apeconomics.ncee.net
Definitions of Employed, Unemployed
and Unemployment Rate
Employed =
everyone currently working, including part-time workers
Unemployed =
people looking for work or temporarily laid off from work
Unemployment Rate =
unemployed
labor force
Labor force =
employed + unemployed
Labor force participation rate =
labor force
population aged 16 and older
Unit 2 : Macroeconomics
National Council on Economic Education
http://apeconomics.ncee.net
Types of Unemployment
Frictional Unemployment
Structural Unemployment
Cyclical Unemployment
Other Employment Concepts
Natural Rate of Unemployment
Full Employment
Unit 2 : Macroeconomics
National Council on Economic Education
http://apeconomics.ncee.net
Phases of the Business Cycle
Unit 2 : Macroeconomics
National Council on Economic Education
http://apeconomics.ncee.net