In your groupsHere is the economic data for 2 countries.

Country A2007 GDP = $4381000 million Population = 127 millionLabor Force = 66.7 millionSearching for work = 2.53 million

GDP per capita: $34,496.06Unemployment rate: 3.8 %

Country B2007 GDP = $1838000 millionPopulation = 188 millionLabor Force = 99.47 millionSearching for work = 9.74 million

GDP per capita: $9776.60Unemployment rate: 9.8 %

USA GDP per capita: $43000USA Unemployment: 6.4 %

1. Which country would you rather live in if you don’t have a job?2. Which country would be considered rich and poor?3. What would you do to help the poor country?4. Do you think it always be this way?

Review

• The US dollar is what sort of currency

• Poker chips are what sort of currency

Why do many Americans hate Congress?

Fiscal Policy• In the US:• Economic policy by

congress• Laws that….• Tax• And spend• And regulate

• Expansionary vs. contractionary

Fiscal Policy• In the US:• Taxation• Raise or lower tax %• Create or eliminate taxes• Income tax after 1913• Tariffs: solar panels, sugar

• Expansionary vs. contractionary

• Affect on consumption and investment?

Fiscal Policy• In the US:• Regulation• Rules• Drug war 1973• Coal regulations EPA• Affordable Healthcare act AKA:

Obamacare

• Expansionary vs. contractionary

• Affect on consumption and investment?

Fiscal Policy• In the US:• Spending• Bridges, military, • New Deal• Transfer payments

• Expansionary vs. contractionary

• Affect on consumption and investment?

MankiwPage 527-8#3, A-D#5 A only#7 A, B, D