Complete the Mandatory Orientation (& sign up on Remind) by January 17thst
Below you will find the learning objective, concept, idea, term, or theory that each question on the exam will cover. Each number in the following list refers to the question number on Exam 2 that will test your knowledge of that specific learning objective. Each of these topics/learning objectives is discussed in the textbook in the order that they are listed below. A much better understanding can often be attained by working through MyEconLab assignments connected to any of these objectives.
After reading Chapter 7, you should be able to:
Name the government bureau responsible for unemployment data and the employment categories its uses in doing so, and describe the history of the unemployment rate since 1890.
a) List the four categories an unemployed individual might fall into according to the Bureau of Labor Statistics,
b) Define what is meant by a discouraged worker, and
c) Explain why knowing the average duration and costs of unemployment is important.
Calculate the unemployment rate, the labor force participation rate, and the employment-population ratio from given data.
List and describe the three major types of unemployment according to economists.
Define what is meant by full employment and by the natural rate of unemployment and how they relate to the four types of unemployment is learning objective 4.
Differentiate inflation from deflation and explain how each affects the purchasing power of money, and list and describe the various price indices published by the U.S. government.
Measure inflation with a price index, with a good understanding of how the different price indices work.
Explain the difference between anticipated and unanticipated inflation, and describe the relation between the nominal interest rate and the real interest rate.
Explain how inflation affects people and what economists think is the main cost of inflation.
Explain what is meant by business fluctuations, list the phases of the business cycle, and give an overview of the history of business fluctuations in the United States since 1880.
After reading Chapter 8, you should be able to:
a) Define what is meant by National Income Accounting,
b) reproduce the circular flow of income and output correctly labeling all actors, markets, and flows, and
c) explain why profits are a cost of production.
a) Discuss what is exchanged in the product markets and in the factor markets, and
b) explain why dollar value of all output must equal total income.
a) Give the definition of GDP,
b) explain why it is a flow concept and not a stock concept,
c) identify two main methods of measuring it, and
d) explain why intermediate goods are not included in the definition using the idea of value added.
List all other transactions that are not included in GDP and explain why they are not included.
Explain some of the limitations of GDP and why GDP is often not an accurate measure of national well-being.
a) List the components that comprise the expenditure approach to measuring GDP, and
b) explain what is contained in each component.
Explain how depreciation (capital consumption allowance) connects GDP to NDP and gross private domestic investment to net investment.
a) List the components that comprise the income approach to measuring GDP,
b) explain what is contained in each component,
c) be able to list the other three measures of national income besides GDP and NDP, and
d) show how all five are related to one another.
a) Distinguish between nominal GDP and real GDP,
b) explain why the distinction matters, and
c) calculate Real GDP from Nominal GDP given data about the GDP Deflator.
a) Discuss why using purchasing power parity when converting one country’s GDP into the currency value of another county is preferred to using the current exchange rate, and
b) describe the per capita GDP of the U.S. as it compares to other countries using both approaches.
After reading Chapter 9, you should be able to:
Define economic growth and recognize the importance of economic growth rates.
Explain why productivity growth, saving, and new technologies are crucial for maintaning economic growth.
Describe how immigration and property rights influence economic growth.
Discuss the fundamental elements that contribute to a nation's economic development.
After reading Chapter 10, you should be able to:
Draw a sketch of a long run aggregate supply curve (LRAS), and discuss the relationship between the production possibilities curve and the LRAS curve.
Explain why the long run aggregate supply curve has the shape that it has and its meaning to economic analysis.
Illustrate economic growth with a PPC and with a LRAS curve and list the sources of that growth.
Draw a sketch of the aggregate demand (AD) curve and discuss its meaning to economic analysis.
Explain the impact of price level changes on the quantity demanded of all output with the use of the real balance effect, the interest rate effect, and the open economy effect.
Discuss what factors can cause a shift of the AD curve to the right (an increase in AD) and what factors can cause a shift of the AD curve to the left (a decrease in AD).
Explain how to use the model of the LRAS curve with the AD curve to determine macroeconomic equilibrium and to further explain what happens if the price level is not at the equilibrium level.
Explain how economic growth can lead to deflation using the LRAS/AD model.
Illustrate and explain supply side inflation using the LRAS/AD model.
Illustrate and explain demand side inflation using the LRAS/AD model.