Due Tues. 12/21

Using your Keynesian equilibrium chart from class, complete the following:


1.  Describe the C/DI relationship.
2.  Describe the S/DI relationship.
3.  Describe the APC/DI relationship
4.  Describe the APS/DI relationship.

Ch. 11 Reading Guide

Due Tues. 12/6


1.  Review the 3 explanations for the downward sloping aggregate demand curve.
2.  Identify each of the factors shifting AD.  How would each factor cause AD to increase?  Decrease?








Due Wed. 12/7


1.  Define short run aggregate supply (SRAS).
2.  Why is the SRAS curve upward sloping?
3.  Identify each factor shifting SRAS.  How would each factor cause SRAS to increase?  Decrease?






Due Friday. 12/9


1.  What is the Long Run Aggregate Supply Curve and why is it vertical?
2.  What does long run equilibrium (where LRAS and AD meet) tell us?

Budget/Spending Quiz

Review the following items to be successful on tomorrows very brief quiz:


1.  Concept and example of discretionary vs. non-discretionary (mandatory) spending


2.  Federal deficit vs. national debt


3.  Arguments to worry/not worry about the national debt.


4.  The federal budget process: 
a.  What is the role of the cabinet secretaries?
b.  What is the role of the President?
c.  What is the role of the Appropriations Committee?
d.  What is the role of the full Congress?

Budget Project Links

Budget Links:  Use these links to help make your changes to the federal budget.  Remember to provide detailed information.




Good Into to Budget Functions:

http://budget.house.gov/budgetprocess/budgetfunctions.htm



Specific expenditures for each budget function (2013 but still good)


http://www.nytimes.com/interactive/2012/02/13/us/politics/2013-budget-proposal-graphic.html








Additional Information on Federal Agencies


https://www.fas.org/sgp/crs/misc/R41726.pdf

Economic Indicators Unit Review Sheet

Review Sheet:  Economic Indicators

Output

1. Define Gross Domestic Product.
2. Identify each component of GDP by the expenditure method.  Provide an example of each.
3. Provide an example of:  intermediate good, non-market transaction, non-productive transaction, secondhand sale, and underground economy.  Why are these excluded from GDP?
4. How is a recession defined in terms of GDP?
5. What is unplanned investment?  How is it a factor in GDP?
6. How are net exports calculated?  What does it mean if the net exports component is a negative number?
7. What is GDP per capita? 
8. Explain the difference between nominal GDP and Real GDP.
9. How is real GDP calculated using base/current year prices and quantities?
10. What is the GDP Deflator?  How is it used in real GDP calculations?
11. What are the critical flaws of GDP as an economic indicator?  In other words, what does it do poorly?
12. Contrast Gross National Product (GNP) with Gross Domestic Product (GDP).

Unemployment

1.  Define:  full employment, unemployed, labor force
2. Identify each type of unemployment and provide an example.
3. Which type of unemployment is most serious to economists?  Least serious?
4. Which two type of unemployment are present at full employment?
5. Describe the impact of each on the calculation of the unemployment rate:  Discouraged workers, students, the underemployed, part-time workers.
6. Explain Okun’s Law.

Inflation

1. Define inflation.  Explain cost push and demand pull inflation.  Graph them.
2. Identify the groups helped/hurt by inflation.
3. What is the CPI?  How does it measure inflation?
4. What are market baskets?  Why are the market baskets weighted in the CPI?
5. How does the CPI differ from the GDP Deflator?  How are the two are indicators similar?
6. Explain the flaws imbedded in the CPI.
7. What is the difference between Core CPI and standard (headline) CPI?
    
     
     
   Calculations:
    

Year	Nominal GDP	GDP Deflator	Population
2009	$5000	125	11
2010	6000	150	12

 

1.  What is real GDP for 2009?
2.  What is real GDP for 2010?
3. What is GDP per capita for 2009?
4. What is GDP per capita for 2010?
5. What was the inflation rate between 2009 and 2010?
6. *What was the rate of nominal economic growth between 2009 and 2010?  What was the real rate of economic growth between those same years?
    

 

Employed persons:  2000

Discouraged workers: 150

Actively looking for work but without job: 300

Not working but not looking for work: 50

Part time workers: 10

1.  Calculate the labor force
2. Calculate the unemployment rate

Ch. 8 Reading Guide (Inflation 141-149)

1.  How does the Consumer Price Index (CPI) measure inflation?
2.  Describe the "market baskets" that are used by the Bureau of Labor Statistics in CPI calculation?  Why are they weighted?
3.  Contrast anticipated and unanticipated inflation.
4.  Review the groups helped and harmed by inflation.
5.  Define deflation and identify its effects.

Ch. 7 Reading Guide Part 2 (Due Thurs)

Carefully read p. 123-125


1.  In your own words, explain the difference between real and nominal GDP.


2.  In what circumstances would an economist prefer real GDP data to nominal GDP data? 


3.  What is a price index?


4.  What is the formula for calculating read GDP when you are provided with a price index?