GDP, Business Cycles, Inflation, Unemployment



Unit 6 – Measuring Economic Performance: GDP, Business Cycles, Inflation, UnemploymentWhat is the Gross Domestic Product (GDP)? ____________________________________________________________________________________________________________________________________ When comparing GDP from one year to another what needs to be removed in order to get a true comparison? ________________________________________What do we call GDP minus inflation? __________________________________What is the business cycle? ___________________________________________Identify the phases of the business cycle on the following diagram:If real GDP were increasing where would the economy be on the business cycle? _________________________________________________________________If real GDP was on the decline where would the economy be on the business cycle? ____________________________________________________________What is the lowest point in the business cycle called? ______________________What is the highest point called? _______________________________________What is a recession? ________________________________________________ Which usually last longer periods of expansion or recession? ________________What are economic indicators? ________________________________________ __________________________________________________________________Identify the following economic indicators and what they would indicate about the economy if they were going up:Economic IndicatorDescriptionDirection in expanding economyUnemployment RateInflationConsumer Price IndexStock MarketNew Building PermitsEcon Unit 5: Part II Stock Markets and InflationIdentify the following terms concerning the stock market:Bull Market _________________________________________________Bear Market _________________________________________________Stock Indexes ________________________________________________Dow Jones Industrial Average (DJIA) ______________________ ______________________________________________________Standard & Poor’s 500 (S&P 500) _________________________ ______________________________________________________Stock Exchanges _____________________________________________NYSE ________________________________________________Why do stock prices change? __________________________________________ __________________________________________________________________What is inflation? __________________________________________________How do we measure inflation? Consumer Price Index _____________________ __________________________________________________________________What does inflation do to the purchasing power of the dollar? __________________________________________________________________Who does inflation hurt most? _________________________________________What causes inflation?Cost-Push Inflation ___________________________________________ ____________________________________________________________Demand-Pull Inflation ________________________________________ ____________________________________________________________What should the government do if we notice that inflation is rising too much? __________________________________________________________________What should the government do if the economy is slipping into recession? __________________________________________________________________What tools does the government have to affect changes in the economy?Fiscal policy _________________________________________________ ____________________________________________________________Monetary policy ______________________________________________ ____________________________________________________________What does the government do to help individuals who suffer from poverty in the United States?Poverty line = ________________________________________________Identify each of the following welfare programs established to combat poverty in the United States:Food stamps __________________________________________(WIC) Women Infants and Children ______________________ ______________________________________________________(SSI) Supplemental Security Income ______________________ ______________________________________________________Econ Unit 5 Part III: Measuring and Predicting Economic TrendsTerm Text Book Description Your Description or real world exampleStock Indexes (644)Stock Exchanges (644)Why Stock Prices Change (643)Inflation (641)Consumer Price Index (642)Effects of inflation on the dollar (642)Fiscal Policy (641)Monetary Policy (664)Poverty Line (648)Welfare Programs (648)Food Stamps (648)Women Infants & Children (648)Supplemental Security Income (649)Progressive Income Tax (649)ConclusionWrite a letter, story, poem, or song about a family or individual that is dealing with the current recession. Be sure to include reference to 7 of the topics we discussed in class today and show that you understand what they mean.Write your answer on another sheet of paper. ................
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