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Unformatted text preview: Review for first challenge Eco 212 The format of the challenge is 5-6 short answer questions (1-2 sentences) and 2 longer questions (usually requiring a graph, some math, and/or a longer explanation). The challenge is closed book. All questions come from the class notes. Also study the first homework, chapters 2,17-20 (2,5-10 in the version of the book which only contains macroeconomics), and this review sheet. Some formulas will be given (students should also know how to calculate percentages, in- cluding change in GDP, inflation, etc.). In particular, the formulas on the next page will be given. 1 Value added = Revenues- cost of goods = Income = wages + profits = spending = C + I + G + X- M CPI = p 1 ,t · q 1 ,b + ... + p n,t · q n,b p 1 ,b · q 1 ,b + ... + p n,b · q n,b · 100 , GDP Deflator = p 1 ,t · q 1 ,t + ... + p n,t · q n,t p 1 ,b · q 1 ,t + ... + p n,b · q n,t · 100 NGDP = p 1 ,t · q 1 ,t + ... + p n,t · q n,t , GDP = p 1 ,b · q 1 ,t + ... + p n,b · q n,t GDP = NGDP...
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This note was uploaded on 01/08/2012 for the course ECO 212 taught by Professor Lorca,m during the Summer '08 term at University of Miami.
- Summer '08