Marginal Analysis, Roller Coasters, Elasticity, and Van Gogh: Crash Course Econ

The video introduces macroeconomics, focusing on GDP, unemployment, and inflation as key economic indicators. It explains GDP's role and limitations, types of unemployment, and the effects of inflation and deflation. The business cycle is described, highlighting economic fluctuations. The video concludes with a preview of future topics.

What is the primary focus of macroeconomics?

• Economic aggregates and national policies

• Cultural impacts on economics

• Individual consumer behavior

• Business management strategies

Which of the following is NOT included in GDP calculations?

• New car sales

• Used car sales

• Government spending

• Consumer spending

What does a decrease in real GDP for two consecutive quarters indicate?

• Recession

• Deflation

• Inflation

• Economic boom

Which type of unemployment occurs when workers are replaced by machines?

• Structural unemployment

• Frictional unemployment

• Seasonal unemployment

• Cyclical unemployment

What is the natural rate of unemployment?

• 0% unemployment

• Only frictional and structural unemployment

• Only cyclical unemployment

• Unemployment due to seasonal changes

Why is excessive deflation considered harmful to the economy?

• It increases consumer spending

• It leads to higher interest rates

• It discourages spending and increases unemployment

• It causes rapid economic growth

What is the business cycle?

• A cycle of government policy changes

• Fluctuations in economic activity over time

• A period of constant economic growth

• A phase of continuous economic decline

Which component is NOT part of GDP?

• Consumer spending

• Business investment

• Government spending

• Foreign aid

What is one potential drawback of government intervention in the economy?

• Increased consumer spending

• Higher employment rates

• Accumulation of national debt

• Stable prices

What is the main goal of economic policy during a recession?

• Achieve full employment

• Increase taxes

• Decrease government spending

• Reduce consumer spending