Macroeconomics Practice Sheet ... work Crash Course Economics #5 71 Macroeconomics Part 1: Key Terms- Fill in the blanks with the key terms below. gross domestic product inflation recession labor force frictional unemployment structural unemployment cyclical unemployment net exports government spending macroeconomics discouraged workers business cycle _ is the study of the entire economy. There are three goals for maintaining a healthy economy. The first goal is to encourage economic growth. This is measured by 2. The second goal is to limit unemployment. The unemployment rate is never zero percent since there is always 3. and 4. A decrease in spending can decrease The GDP and cause a 5. resulting in high 6. third goal is to keep prices stable and to avoid significant deflation or 7. Economies tend to expand and contract over time. This is called the 8. Part 2: Check Your Understanding- Answer the following questions. 9. According to the video, why is it important to have a "systematic way to measure the overall economy"? 10. Why is real GDP commonly used to measure the health of the economy? 11. According to the video, how do economists determine when an economy is at full employment? Part 3: Practice- Identify if each of the following is an example of consumer spending (C), investment spending (1), government spending (G), net exports (XN), or not counted in GDP (NC). 12. The military buys ten new fighter aircraft 16. An American buys a sofa made in Mexico 13 Jacob purchases a movie ticket 17. Your uncle helps you move into a new apartment 14. Stan buys a used jet ski 18. Hank buys a quesadilla at Taco Bell 15 Apple builds a new headquartered in Texas 19 The city installs new stop signs in your town Part 4: Application- Visit the U.S. Bureau of Labor Statistics website and answer the following questions. 20. Based on the change in the unemployment rate over the last six month, does the economy appear to be expanding or contracting? Justify your answer. Copyright Jacob Clifford 2021. www.ACDCecon Annual license required. Do not use unless you have purchased a lic