Upload
elvin-morrison
View
218
Download
0
Embed Size (px)
Citation preview
GDP Business Cycle
GDP Growth
Unemployment Inflation
10 10 10 10 10
20 20 20 20 20
30 30 30 30 30
40 40 40 40 40
50 50 50 50 50
Answer 1 – 10
• What is the total value of all final goods and services produced in a country in a given year?
Answer 1 – 20
• What are intermediate goods?
• Bonus 10: Are intermediate goods counted in GDP? Explain.
Question 1 - 30
• GDP expressed in constant, unchanging dollars. In other words, GDP adjusted for inflation.
Question 1 - 40
• This approach to calculating GDP adds up all the incomes in an economy in a given year.
Answer 1 – 40
• What is the income approach?
• Bonus 10: What is the other approach, and what categories go into calculating it?
Question 3 - 40
• The invention of the iPhone increased productivity overall. We would expect GDP to...
Question 3 - 50
• A divorce lawyer is paid for his services. Paid well. As in bathing in obscene amounts of cash. We can expect GDP to...
Answer 3 – 50
• What is increase?
• Bonus 10: This question goes towards a limitation of GDP measurement. What is that limitation and explain?
• Bonus 10: Give another limitation of GDP.
Question 4 - 20
• Lifeguards that lose their job after summer is over suffer from this type of unemployment.
Question 4 - 30
• A steel mill worker lost his job because his factory shut down completely. This represents this type of unemployment.
Question 4 - 40
• Mitt Romney was once the Governor of Massachusetts, but now works at Walgreens as a cashier. He is...
Question 5 - 30
• As inflation increases, this decreases, which does not allow you to buy as many goods and services as before.
Question 5 - 40
• Tickle Me Elmo dolls are in high demand, but there’s not enough of them. To reduce demand, Sesame Street raises the price on all Tickle Me Elmos. This cause of inflation is explained by which theory?
Answer 5 – 40
• What is the demand-pull theory?
• Bonus 10: The situation where we have too much demand and not enough supply.
Question 5 - 50
• The cost of oil goes up, which forces the producer to increase the price of plastic bottles, increasing inflation. This cause of inflation is explained by which theory?