Econ 102 Study GuideExam 1 is on Friday, Oct. 2 During Class- Macroeconomics What are the goals of macroeconomics? How is macroeconomics different from microeconomics? Why should we understand macroeconomics?- Model of Demand & Supply Find the equilibrium point Understand the relationship between the variables Know what happens if one of the variables increase or decreases Be able to explain/relate the numerical values into a real life story Know which variables are the exogenous and which ones are the endogenous- Gross Domestic Product Define GDP What does GDP measure? Be able to give examples of GDP Know the formula Define and calculate the Nominal Gross Domestic Product Define and calculate the Real Gross Domestic Product Define and calculate the GDP Deflator Be able to understand the CPI and be able to calculate it- Labor Force Define what being “employed” means What does “unemployed” mean? Who is included in the labor force? How do you calculate the labor force Know the 3 stages of the Labor Market Be able to calculate the Labor Force Participation Rate & define it Calculate the unemployment rate- National Income Accounting (Y=C+I+G+NX) Be able to describe what the Consumption Expenditure tells us Know the formula Be able to describe each of the variables List some examples in each of the consumption areas- Production Function Describe and differentiate between capital (K) and labor (L) Know the Production Function Equation Be able to distinguish between the different types of Production Functions Perfect substitution Complementarity- Marginal Product of Labor Know the formula Be able to calculate the Marginal Product of Labor if given values for K & L Understand how changes in capital and labor effect output- Graphs- Be able to Understand the following Graphs & Interpret & State some Numbers World Prices starting from about 1700 to 2000 GDP per Person in the US from 1900 to 2008 Distribution Graph of world income with respect to world population Percent of the world population with respect to the percent of world income Employment Pie Chart Changes in Inflation Rates from 1900 to 2000 Unemployment Rate from 1900 to 2000 The change in the Labor Force comparing men and women from 1950 to 2000 The Comparison of the CPI to the GDP
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