ESSENTIALQUESTIONSF11

ESSENTIALQUESTIONSF11 - Intro Macro - Sheflin Essential...

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Essential Questions in Intro Macroeconomics 12/8/2011 Many/most Final Exam multiple-choice questions will deal with these issues (as did the HW assignments in one form or another). If you can answer these in words, you should have no trouble with the multiple choice questions on the final. If you cannot, look up the answers and if still having trouble, post on the FINAL EXAM RELATED chat room. Graph means show the appropriate graphical analysis –ex: aggregate Supply and Demand, Money Supply and Demand, Yield Curve, etc. Arrow diagram means be able to trace out steps - M ↑→ i ↓→ I ↑→ D ↑→ P ,Y Equation means be able to write out a related equation - Y=C+I+G+X-M YOU SHOULD LIKELY STUDY THIS FROM THE BOTTOM TO THE TOP – THAT IS, FROM MATERIAL COVERED LATE IN THE COURSE, BACK TO THE BEGINNING . Items in boldface are likely the most important. BACKGROUND AND MICRO ISSUES 1. How do economists measure the value of anything? 2. What determines the price and quantity of any good or service? graph 3. What is opportunity cost and why is there no free lunch? 4. What does the invisible hand mean, and why does it suggest laissez-faire? 5. What are the three questions answered by any economic system and how are they answered under a market-based system 6. What is the difference between capitalism, socialism, communism 7. What is the definition of Microeconomics? Macroeconomics? Economics? CIRCULAR FLOW,NATIONAL INCOME ACCOUNTING AND OTHER MEASUREMENTS 1. 2 Important points of the Circular flow model 2. What are 4-5 key points in the definition of GDP (i.e., define GDP carefully)? 3. 3 Ways to calculate GDP (Value Added is one) 4. What is the relation between Gross and Net Investment and Depreciation 5. Definition of Real and Nominal GDP 6. How do you calculate real gdp from nominal? Formula 7. What is meant by deflating nominal gdp? 8. How do we measure/calculate Unemployment, Labor Force, Employment 9. What are Discouraged Workers and Hidden Unemployment 10. What is the CPI? What is it used for? 11. How is the CPI calculated, very roughly (in a sentence)? 12. What are shortcomings of the CPI? 13. What is the GDP deflator? 14. What is meant by chained ($2005) GDP? 15. What is meant by seasonally adjusted data? 16. What are some shortcomings of GDP as measure of economic activity and well- being? INVESTMENT RELATED
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ESSENTIALQUESTIONSF11 - Intro Macro - Sheflin Essential...

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