Unit 2: Supply, Demand, and Consumer Choice
Problem Set #2
1. EXPLAIN an experience or example that shows the real world application of each of the following.
Define the terms in yo
National Income Accounting
Gross Domestic Product (GDP)
Gross domestic product (GDP) is the
market value of the final goods and services
produced within a nations borders in a given
A. Market Value
Production in Time Period 1
The risk exists that, with aggregate demand exhibiting
considerable momentum, output could overshoot its
sustainable path, leading ultimately in the absence of
countervailing monetary policy action to further upward
pressure on inflation.
Ben Bernanke, th
You take my life when you do take the
means whereby I live.
- William Shakespeare
Chapter 7 - Unemployment
Learning Catalytics identify yourself:
The Labor Force, 2000
First Name _
Last Name _
* Show your work.
Marginal Tax Rate
1. * Using the table above, calculate the tax that a family would pay if their taxable income is
The three things that happened to U.S. personal income of $13,744 Billion in 2012
Play the Matching Game
Personal Taxes (T)
_ $1,498 billion (11%)
Consumption Expenditures (C) _ $11,150 billion (81%)
Personal Saving (S)
_ $1,096 billion (8%
Macroeconomics SLO 3 and SLO 8 Learning Objectives
SLO 3: Define and measure national income and rates of unemployment and inflation.
SLO 8: Define economic growth and identify sources of economic growth.
National Income (GDP), Inflation, and Unemployment