Thursday, May 12, 2016

Thursday/Friday May 12-13

Business Cycle Notes- pp. 310-316

Unemployment/Tax/Business Cycle Questions

  1. What is Structural Unemployment? Give an example.
  2. How do seasonal and cyclical unemployment differ?  Give an example of each.
  3. When does cyclical unemployment take place?

  1. What taxes go to Social Security and Medicare?
  2. Why isn’t full employment the same as zero unemployment?
  3. Explain the 3 tax forms and what their purpose is.
  4. How has terrorism affected employment in the USA?
  5. What does it mean to be underemployed?
  6. What are the 4 characteristics of a good tax? Briefly explain each.
  7. What are the 4 phases to a business cycle? Draw a pictorial representation of a business cycle.
  8. What are the contributing factors to each phase regarding GDP?
  9. What is stagflation?  Why is it a problem when an economy experiences it?
  10. What are the 4 main economic variables that affect business cycles?
  11. How can interest rates push a business cycle into a contraction?
  12. How did the Great Depression affect economists’ beliefs about the macro economy?
  13. At what point of the business cycle would you want to be?  In 1-2 sentences explain your reasoning.

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