Macro Unit Review/Study Guide What is GDP? Gross Domestic Product What is GDP used to measure? ( +I + 9 + Ne What is the CPI used to measure? How is the CPI calculated? How can inflation harm the economy? What are the three main types of unemployment? Frictional , Structural and Which do economists consider the most difficult to overcome? Identify and label the four main elements of the business cycle. Peak Expassionany. + TREND B LINE Contrassionay Tough What is meant by the term national debt? Approximately how much is it currently? What is a budget deficit? What is the federal government's budget deficit projected to be this year? What are the three functions of money? Fill in the chart below concerning Federal reserve monetary policy Fed Tool How used to expand How used to contractWhat is monetary policy? The fed , the central Banks of the Us. is in charge of regulating the money supply to meet national economic goals . How does fiscal policy differ from monetary policy? How does the government influence aggregate supply? Aggregate demand? What does the government do to operate under supply-side economics theory? What are some of the key features/actions of a government managing fiscal policy from a demand-side perspective? What are the primary principles of Keynesian economics? How many districts does the Federal Reserve System have? What is its purpose? What is the FDIC? Which banks belong? What role does the government play in the circular flow model? Be able to explain how various economic measures relate to one another. For example, if aggregate spending rises, what is likely to happen to unemployment? to GDP? Pay special attention to the Fiscal & Monetary Policy packets