ECN 203: Economic Ideas & Issues
Department of Economics
Final Exam Study Guide
Review past homework and quizzes.
Review chapters 11 to 17 and the lecture slides
Definition of GDP, Full GDP, actual GDP, nominal GDP, real GDP
Expansionary fiscal policy to combat recession
Fiscal stimulus: (G-T) [ G and/or T]
The crowding-out effect
(G T) r I
Effect on exchange rate
(G T) r capital inflow D$ $ appreciation
Federal Reserve System (the Fed)
Central bank of the U.S.
Oversees the banking system and regulate
the supply of money in the economy
7-member board of governors
Appointed by Presiden
If the economy is out of long-run equilibrium, wage
and price adjust to move the economy back to the
Case 1: actual GDP is less than full GDP
Case 2: actual GDP is m
Basic Macro Model
The AD-AS Model
Y-axis: Price Level (P)
X-axis: Real GDP (Y*, YF)
the AD-AS Model to explain
Subprime mortgage crisis 2007-2009
The AD-AS Model
Demand: Y = AD(P|AE
Why doesnt the economy always produce up to its full
Why are some resources unemployed?
What causes the cost of living to go up, making living
How can we live in an econo
Study Guide test #4
1. The purpose of food additives is to improve nutrient value, maintain freshness, help in
processing, make for more appealing (adding color or flavor). They are added
intentionally to enrich foods, or add nutrients, col
Review for test #3
Calcium is not well absorbedless that 30%
Basal metabolic rate declines after 25-30, you dont need as many calories
A major mineral means you need more of it.
The six major minerals are calcium, phosphorus, magnesium, sodium,
1. Milk provides all of the essential amino acids.
2. Amino acids are used for?
3. Functions of proteins:
a. Building new tissue during growth or after injury
b. Upkeep and replacement of skin, hair, intestinal cells and blood cells.
Nutrition Test #1
1. Anyone can sell anything as a food supplement according to Food and Drug
2. Anyone can be a nutritionist.
3. Are nutrients chemical substances? Yes?
4. No such thing as good or b