1. Define any 10 terms. Give examples where pertinent.
Consumer Price Index
Producer Price Index
2. Essay Questions. Please answer all parts of each question. Choose either ONE:
- What is the business cycle? Demonstrate and explain?
- What is the importance of GDP?
- What is the distinction between nominal GDP and real GDP?
- From a macro-economic perspective, how do we measure economic growth? Explain, and give examples.
- How important do you think is the measurement of macro-economic growth?
What is the GDP price deflator?
- What is supply? What is demand?
- Develop a model of a market, utilizing supply and demand. What are the dominant variables or parameters?
- What is a shortage? What is a surplus? DEMONSTRATE (use model)
- Via the model, explain the dynamic changes that can happen in a market. Give examples.
- Relate the Micro economic model of supply and demand to the Macro-economic modal of Aggregate Demand and Aggregate Supply.
3. Essay Questions. Please answer all parts of each question.
- What is Aggregate Demand?
- Develop a model showing the importance and effects of Aggregate Demand on the overall economy.
- What is Fiscal Policy?
- What are the goals of Fiscal Policy?
- What are the tools of Fiscal Policy?
- Explain the how expansionary Fiscal Policy would be implemented.
- What is the presumed result of the use of Fiscal Policy?
- What are the criticisms regarding the use of Fiscal Policy?