This document provides economic data for two countries. Country A had a 2007 GDP of $4.38 trillion, population of 127 million, labor force of 66.7 million, and 2.53 million people searching for work. Its GDP per capita was $34,496.06 and unemployment rate was 3.8%. Country B had a 2007 GDP of $1.84 trillion, population of 188 million, labor force of 99.47 million, and 9.74 million people searching for work. Its GDP per capita was $9,776.60 and unemployment rate was 9.8%. The document asks which country would be better to live in without a job, which is rich/poor, how to help the poor country

1. In your groups
Here is the economic data for 2 countries.
Country A
2007 GDP = $4381000 million
Population = 127 million
Labor Force = 66.7 million
Searching for work = 2.53 million
Country B
2007 GDP = $1838000 million
Population = 188 million
Labor Force = 99.47 million
Searching for work = 9.74 million
GDP per capita:
$34,496.06
Unemployment rate: 3.8 %
GDP per capita:
$9776.60
Unemployment rate: 9.8 %
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?
USA GDP per capita: $43000
USA Unemployment: 6.4 %

3. Review
• The US dollar is what sort of currency
• Poker chips are what sort of currency

4. Why do many Americans hate
Congress?

5. Fiscal Policy
• In the US:
• Economic policy by
congress
• Laws that….
• Tax
• And spend
• And regulate
• Expansionary vs.
contractionary

6. 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?

7. •
•
•
•
•
•
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?

8. Fiscal Policy
•
•
•
•
•
In the US:
Spending
Bridges, military,
New Deal
Transfer payments
• Expansionary vs.
contractionary
• Affect on consumption and
investment?

11. Mankiw
Page 527-8
#3, A-D
#5 A only
#7 A, B, D