Macroeconomic Goals- EconMovies #6: Back to the Future (Reupload)

The video explores economic concepts through the lens of the movie 'Back to the Future'. It examines the US economy in 1955 and 1985, discussing GDP, unemployment, and inflation. The video explains the three types of unemployment and the concept of stagflation. It concludes with predictions for 2015 and emphasizes the role of economists in analyzing economic indicators.

What are the three main goals of an economy?

• Promote tourism, increase GDP, and reduce debt

• Grow over time, reduce unemployment, and stabilize prices

• Increase taxes, reduce imports, and stabilize currency

• Expand military, increase exports, and reduce inflation

What was a significant social issue in the US during 1955 despite economic growth?

• High unemployment

• Technological stagnation

• Inflation

• Racial inequality

Why is nominal GDP not a perfect measure of economic growth over time?

• It does not account for inflation

• It includes only domestic products

• It is calculated annually

• It ignores technological advancements

What is the natural rate of unemployment in the United States?

• 4% to 6%

• 2% to 4%

• 6% to 8%

• 0% to 2%

Which type of unemployment is caused by a recession?

• Frictional unemployment

• Structural unemployment

• Cyclical unemployment

• Seasonal unemployment

What was the inflation rate in the US in 1985?

• Less than 1%

• About 2%

• About 4%

• More than 6%

What economic condition combines high inflation with a stagnant economy?

• Recession

• Hyperinflation

• Stagflation

• Deflation