Inflation, deflation, and unemployment
1. What is the formal definition of economics?
Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society. One of the key words in the definition of the term "economics" is coordination.
2. What is a consideration of economics? What is not?
3. What role does economics play in your personal decisions?
4. What is the difference between real GDP and nominal GDP? Does GDP accurately reflect our nation's productivity? Why or why not?
5. What are the different types of unemployment and how do they affect the economy?
6. What is the formal definition of inflation? What is the formal definition of deflation?
7. What is the historical relationship between inflation and unemployment?
8. Identify a source for economic forecasts of real GDP, the unemployment rate, the inflation rate, and a key interest rate. What do these forecasts imply about the relative strength of the economy over the next two years? How might your organization be impacted by these changes?
9. What is the relationship between the market and aggregate demand and supply curves?
10. What are the advantages and disadvantages of a market economy in comparison with a command economy?