Question 1) State two measures of economic growth.
Question 2) Describe why growth is a desirable goal.
Question 3) Write down two major sources of growth.
Question 4) Describe the “rule of 70.”
Question 5) Write average long-term growth rates for U.S. and qualifications of raw data.
Question 6) Summarize Global Perspective 8-1.
Question 7) Describe what you mean by a business cycle.
Question 8) Explain the four phases of an idealized business cycle.
Question 9) Write down two types of non-cyclical fluctuations in business activity.
Question 10) Explain how innovation and/or random events might cause business cycles.
Question 11) Describe why business cycles affect capital and consumer durable goods industries more than non-durable goods industries.
Question 12) Write down causes of frictional, cyclical, and structural unemployment.
Question 13) Identify the full employment or natural rate of unemployment.
Question 14) Explain how unemployment is measured by the Bureau of Labor Statistics (BLS).
Question 15) Evaluate strengths and limitations of BLS unemployment statistics.
Question 16) Write down the economic costs of unemployment and the groups which bear unusually heavy unemployment burdens.
Question 17) State inflation and write two types of inflation.
Question 18) Explain the predicted outcome of increased total demand on employment and inflation in ranges 1, 2, and 3 when presented with suitable diagram.
Question 19) Name three groups who are hurt and two groups who may benefit from unanticipated inflation.
Question 20) Write three possible effects of inflation on output and employment.
Question 21) Compare U.S. inflation and unemployment rates to one or more industrialized nations.