What’s on the exam? Chapters 4 thru 7. You should also be working the homework exercises and expect such questions. The answers are also posted, but you need to write the answers in your own words and use the answers to check your understanding. You will have to write the answers on the exam without the crutch of the answer book. Hope this helps. Bring questions Friday!!
Chapter 4: What is productivity? What are the broad issues macroeconomists study? wht do we mean by the standard of living? How do we measure economic growth, and why is it important? What does aggregation mean, and why is it important in macroeconomics? Why is it valuable to aggregate? What is the shortcoming of aggregation? What types of macroeconomic policies can there be? What is the difference between monetary, fiscal, and structural policies?
Chapter 5: What is GDP? What are the four ways of measuring it? What are final goods and services? Can a good be both intermediate and final? Give an example! Define and calculate nominal versus real GDP. Real GDP and its relation to economic well-being. Examples. What sorts of factors that contribute to economic well-being are related to GDP? What is unemployment, definition, and how it is calculated. What are the costs of unemployment? Duration of unemployment. Why is the unemployment number not measuring ‘true’ unemployment?
Chapter 6: What is the CPI and how is it calculated? How can we adjust numbers for inflation? Why do we need to sometimes? Under what conditions should we? Possible errors in the CPI calculation. What is inflation, and what are its costs? The dimensions of true cost of inflation (the types of questions it raises in the economy). Interest rates and inflation– the real interest rate and how to calculate it. What is the Fisher effect? See the questions at the end of the chapter!
Chapter 7: Real GDP per person and the rise in living standards– are they the same? Why do small differences in growth rate matter to countries? What is compound interest, how do we calculate it? Why is average labor productivity important? How do we figure it? Human capital, technology, diminishing returns to capital, resources, management, entrepreneurship, and political and legal considerations. You should be able to cite examples of each. What could be the costs of economic growth? How can we promote economic growth? Limits to growth? Issues with these.
Supply Chain and Logistics 