Essential Questions in Intro Macroeconomics – ***Revised 5/1***Many/most Final Exam questions will deal with these issues (as did the HW assignments in oneform or another). Graph means show the appropriate graphical analysis – aggregate Supply andDemand, Money Supply and Demand, Yield Curve, etc. Arrow diagram means be able to traceout steps - M↑→i↓→I↑→D↑→P↑,Y↑ Equation means be able to write out a related equationNOTE THAT WE HAVE NOT COVERED ALL OF THESE YET.BACKGROUND AND MICRO1. How do economists measure the value of anything?
2. What determines the price and quantity of any good or service?
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?
1. 2 Important points of the Circular flow model
2. What are 5 key points in the definition of GDP?
3. 3 Ways to calculate GDP (Value Added is one)