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202 Final Exam Guide Fall 10

202 Final Exam Guide Fall 10 - ECO 202 Lyons Fall 2010...

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ECO 202, Lyons Fall 2010 FINAL STUDY GUIDE Continued--- FINAL EXAM : Monday, December 13th, 5:30–7:30 pm, in FSB 0025 Review Session: Sunday, December 12th, 4:30–6:30 pm, location to be announced A. Syllabus revisions (end Nov. & Dec.) Part V of the syllabus will not be covered on the final exam. IV.C. Chapter 12, excluding the details on the “monetary policy rule” on pages 360–363, and the algebraic appendix, pages 381–82. [The essential idea is that the Fed will tend to raise interest rates when the rate of inflation increases; also, it will lower interest rates when the economy suffers a recessionary gap.] IV.D. Chapter 13, excluding sections on potential output shocks and Greenspan on pp 405–407. VI. Chapter 14, pages 413–426 only ; remainder of chapter will not be discussed. Review pages 1–5 of the Economy Update pamphlet, and read pages 6–14 as assigned. B. Coverage Implicitly, the final covers the entire course, but most of the exam will relate specifically to the topics covered in the latter part of the term: that is, emphasis will be placed on materials covered since the first exam: some emphasis will be given to materials from Chapter 9 (money creation by the Fed and the banking system); greater stress will be placed on the more recent materials from chapters 10 through the assigned part of Chapter 14, and the portion of chapter 16 on trade balances and international capital flows.
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