Econ Chapter 9
Economic growth
In the long run, the PPF shifts, and the question becomes how can you shift it the
most
Rule of 70: 70/(avg. growth rate of GDP) = years it will take for standard of li
Intermediate Microeconomics
Midterm 1
(You have 75 min. to complete this exam)
Wednesday, March 8, 2017
1
Exercise 1 (20 points)
Define the following terms (if the definition is mathematical in nature
Intermediate Microeconomics
Midterm 2
(You have 75 min. to complete this exam)
Wednesday, April 12th, 2016
1
Exercise 1 (20 points)
Please see the definitions in the book or the lecture notes.
Exercis
Econ Chapter 7
Inflation
2 methods of calculation
o One uses index numbers
o One uses percentages
Government compiles a list of the 400 most important goods and services sold in
US from the point of
Econ Chapter 6
Looking at the economy in the context of business cycles
Looking at 3 things in particular:
1. Examination of 3 variables economists look at to discuss the state of the economy
GDP
Un
Econ. Ch. 2
Production Possibilities Frontier (graph in notebook):
Value of Consumption vs. Investment goods
Consumption: Consumers buy these
Investment: Businesses buy and use these
Concave curve
Econ. Ch. 5
Objectives of economic policies
1. Achieve economic growth (measured by GDP, which measures how much output
a country produces in monetary terms). GDP has to grow faster at a faster rate
t
Econ Chapter 3
Supply and Demand
Interaction between producers and consumers produces equilibrium prices in the
marketplace
Market: a buyer and a seller interacting regardless of whether a sale takes
Exchange Rates
Theory of floating or flexible exchange rates
Any currency is a commodity
Price of Euro
in terms of
Dollars
Supply of
Euros (by
Europeans
Demand for
Euros (by nonEuropeans)
Quantity of
Econ Cycle 3
Chapter 13
Most liquid forms of money refer to forms of money you can use at any time
without having to waste any time or having any cost involved
Less liquid forms means there is more ti
Econ Chapter 14
What prompts the fed to apply one kind of monetary policy or the other?
Placing the instruments of monetary policy in the context of the business cycle.
Interest Rate
Demand
for money
Intermediate Microeconomics
Final Exam
(You have 1 hour and 50 min. to complete this exam)
Monday, May 15th, 2017
1
Exercise 1 (20 points)
Define the following terms (if the definition is mathematical