Unit Two Macroeconomics Performance And Policy Jeopardy Template

2.1 Measures of macroeconomic performance (Economic growth and inflation)	2.1 Measures of macroeconomic performance (Unemployment and BOP))	2.2 AD	2.3 AS	2.4 National Income
100 Disinflation What is the term for " a fall in the rate at which the general price level is rising"	100 unemployed/labour force x100 Give the formula to calculate the unemployment rate	100 C + I + G + (X-M) What is the AD equation?	100 to the left What way will the AS curve shift if costs of production increase?	100 Government spending, exports, Investment List three injections
200 One of the following: difficulty to include impact of new technology, problem of measuring changes in technology, only measures typical households spending habits State one limitation of the CPI	200 • those without a job, want a job, have actively sought work in the last 4 weeks and are available to start work in the next 2 weeks, or • out of work, have found a job and are waiting to start it in the next 2 weeks. Give the ILO definition of unemployment	200 Decreases If interest rates increase, what happens to AD?	200 Imports become less affordable and AS decreases If the exchange rate depreciates, how will this impact AS?	200 Taxes, imports, savings List three withdrawals
300 False (will lead to inflationary pressures) True or false: A growth in the money supply will lead to deflationary pressures	300 cyclical unemployment Demand deficient unemployment is also know as:	300 % of disposable income that is saved How is the savings ratio calculated?	300 AS - total amount of goods and services produced and supplied by a an economy's firms at particular price level over a period of time. Short run when wage rates are constant. What is SRAS?	300 1/(1-MPC) What is the formula to calculate the multiplier
400 Real GDP + Factor incomes How is Real GNI calculated?	400 Sectorial, technological, regional State the three types of structural unemployment	400 Gross investment is before depreciation is taken into account What is the difference between gross investment and net investment?	400 Government policies that increase competition between firms is likely to increase LRAS as competition is likely to force firms to be more productive. However, sometimes less competition can be beneficial if it encourages investment and innovation. How does competition policy influence LRAS?	400 MPS + MPM + MPT What is the formula for MPW?
500 deficit would increase If a country's current account balance was in a deficit, how would a high inflation rate in that country affect the deficit?	500 increases If the NZD appreciates, what happens to NZ's current account deficit?	500 1. The real balance effect, 2. The international competitiveness argument, 3. At higher average prices the interest rate is likely to be higher What are the three reasons as to why the AD curve is downward sloping?	500 When there is mass unemployment, output can be increased without any increases in costs and therefore prices. As the economy approaches full employment, higher output leads to higher prices. Explain why the Keynesian LRAS is shaped the way it is.	500 Model needs to be correctly labelled. Draw a model showing AD and LRAS. On the model show the effect of decreasing interest rates.

Unit Two: Macroeconomics performance and policy

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