JEOPARDY! Inflation Labor(No) Jobs Math! Alex Trabeconomics GDP
and the flow of spending and income. 100 200 300 400 500
Slide 3
A sustained increase in the general price level
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INFLATION
Slide 5
A collection of goods and services from which prices are
measured to compute inflation
Slide 6
Market Basket
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A number that has not been adjusted for inflation
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Nominal
Slide 9
Inflation tends to transfer value from __________ to
_________
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Lenders to Borrowers
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DAILY DOUBLE!
Slide 12
(From the reading): The most commonly used price index is the
CPI. Some economists prefer the ________ as it includes a far
larger market basket than the CPI nearly all goods and services
available in the economy.
Slide 13
GDP Deflator
Slide 14
He wrote The General Theory of Employment, Interest, and Money
in 1936. His economic ideas changed the way governments managed
their economies.
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JOHN MAYNARD KEYNES
Slide 16
A period of time when domestic output declines
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RECESSION
Slide 18
It includes all working people plus all people over 16 who are
actively looking for jobs.
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Labor Force
Slide 20
A person who does not have a job who is actively looking for
one.
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Unemployed
Slide 22
A stay at home mom or a retired person would both be an example
of thisA stay at home mom or a retired person would both be an
example of this.
Slide 23
Civilian outside the labor force.
Slide 24
The likely effect of an increase in unemployment
compensation.
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Natural Rate of Unemployment Rises
Slide 26
Unemployment which is attributable to a decline in the economys
total production
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CYCLICAL UNEMPLOYMENT
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Unemployment that is due to people being between jobs
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FRICTIONAL UNEMPLOYMENT
Slide 30
John has been replaced at work by a machine. John is the victim
of what kind of unemployment?
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STRUCTURAL UNEMPLOYMENT
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An unemployed person who has given up looking for work
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DISCOURAGED WORKER
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Full employment allows for these two types of unemployment to
exist.
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STRUCTURAL AND FRICTIONAL
Slide 36
National Income may be found by determining the sum of all
types of spending. What are the variables in this sum?
Slide 37
C+I+G+(X-IM)
Slide 38
The minimum wage in 1994 was $4.25. The CPI in 1994 was 148.2.
Compute the real minimum wage in 1994. Just showing your math is
fine.
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$2.87
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DAILY DOUBLE!
Slide 41
In May many new college graduates enter the workforce. What
should happen to the unemployment rate every May ?
Slide 42
It will increase
Slide 43
Assume that the unemployment begins the summer at 8%. During
July and August one hundred thousand people enter the workforce
while only ninety two thousand jobs are created. What happens to
the unemployment rate?
Slide 44
It stays the same.
Slide 45
Assume that the current inflation rate is 3% when you take out
a loan for which you must pay 7% interest. What is the real rate of
interest?
Slide 46
4%
Slide 47
The type of market in which households sell labor and other
factors of production to businesses.
Slide 48
Factor Market
Slide 49
This is calculated by pricing several hundred items in a market
basket and is used to compare real price levels.
Slide 50
CPI an index number
Slide 51
A good used for resale or for the use in producing another good
(Hint: NOT counted in the GDP)
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INTERMEDIATE GOOD
Slide 53
The sum of the expenditures of business firms on new plant and
equipments and households on new homes.
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INVESTMENT SPENDING (I)
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This type of person often gains from inflation
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BORROWER
Slide 57
The sum of the incomes of all the individuals in the economy
after taxes and transfer payments
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DISPOSABLE INCOME
Slide 59
Sums of money that the government gives certain individuals as
outright grants.
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TRANSFER PAYMENTS
Slide 61
Shows the relationship between total consumption and total
disposable income
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CONSUMPTION FUNCTION
Slide 63
The ratio (shown as slope) of changes in consumption relative
to changes in disposable income.
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MARGINAL PROPENSITY TO CONSUME
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The volume of goods and services that a given sum of money will
buy.
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PURCHASING POWER
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Brittany Spears won a Grammy Award for this single/type of
unemployment resulting from not enough demand.Brittany Spears won a
Grammy Award for this single/type of unemployment resulting from
not enough demand.
Slide 68
Tox-Cyclical
Slide 69
A number computed to measure inflation/He hosted MTVs Pimp My
RideA number computed to measure inflation/He hosted MTVs Pimp My
Ride
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IndeXzibit
Slide 71
A general rise in prices/He founded Napster and was an early
Facebook investor and was portrayed by Justin Timberlake in The
Social Network.A general rise in prices/He founded Napster and was
an early Facebook investor and was portrayed by Justin Timberlake
in The Social Network.
Slide 72
Infla-Sean Parker
Slide 73
Someone who has given up looking for a job/this Muppet was the
on-location reporter for Muppet newscasts.Someone who has given up
looking for a job/this Muppet was the on-location reporter for
Muppet newscasts.
Slide 74
Discouraged Wor-Kermit the Frog
Slide 75
The dollar value of all final goods and services produced
within a countrys borders in a year/He is the lead guitarist for
The WhoThe dollar value of all final goods and services produced
within a countrys borders in a year/He is the lead guitarist for
The Who
