Take out Module 42 notes on inflation for a quick notes check (no quiz)

Quick Review!

• What phase of the business cycle do wages go up?
• Expansion
• What phase of the business cycle do wages go down?
• Contraction

Review cont.

• When are wages at their highest?
• Peak
• When are wages at their lowest?
• Trough

More Review

• When will borrowing decrease?
• Contraction
• When will borrowing increase?
• Expansion
• When will borrowing be at it’s lowest?
• Trough

Even More Review!

• When will unemployment be at its lowest?
• Peak
• When will business profits be the highest?
• Peak
• When should you look for a new job?
• Expansion

Practice:

• For the following slides, decide whether the scenario would be counted in GDP. Remember, they can be included either through expenditure, or income method

GDP?

• Shami earns $7.50/hr working a the local grocery store
• Yes, wage

GDP?

• The US armed forces invade a small island and in the process spend $5 billion on machines, arms, and ammunition
• Yes, Gov’t purchases

GDP?

• A rancher receives a monthly check for the oil pumped off of his property
• Yes, rent

GDP?

• Intel spends $300 million building a semiconductor factory in San Jose, Costa Rica
• No, Not included- outside US

GDP?

• Lindsey buys a new John Deere tractor for her organic farming business in New Hampshire
• Yes, investment

GDP?

• Jim and Frank decide to start a boy band and purchase a used Volkswagon Euro Wan in which to tour
• No, Not counted, used van

Practice

• For the following examples, determine what type of unemployment applies, or if the person would not be counted in the labor force

Unemployment?

• Arvod cannot find work as a mall Santa in January
• Seasonal