Exam Review November 10

Go to the following link (copy the link)  to review the Presentation on GDP ( I made a few changes!!!)

https://docs.google.com/presentation/d/1Fk-PU0cH7xt4Ia_VpLjcBetfb8cig1ZNnKWIo5-IyNk/pub?start=false&loop=false&delayms=3000

Exam Review November 10

Circular Flow Diagram

Parts of the Diagram (markets,firms, households)

GDP

What makes GDP?

Which component makes the greatest part of GDP?

What is included/ what is not included in GDP?

Real vs Nominal GDP

What is GDP per capita?

Why is GDP per capita not a good measure for quality of life?

Unemployment

Employed vs Unemployed (who counts / who doesn’t)

Types of Unemployment

What is Natural Rate of Unemployment (factors that affect NRU)?

Calculate Employment and Unemployment rates

Inflation

What is price level, what is price, and which one matters in our economy?

Real vs nominal wages

Menu Costs

Shoe-leather Costs

Unit of Account Costs

Consumer Price Index (CPI)

What is CPI?

How do you show increases and decreases in CPI?

What is the Base year?