ECON 100B Final Exam Review Sheet David Agrawal The following are some concepts that I think are important to master. They may or may not be important for the exam. In addition, there are many important concepts that I have left off of this list. Thus, this list should only serve as a primitive outline. You should use the Chapter section headers as a more comprehensive outline and should consult your section and lecture notes. You should be able to find solutions mathematically when appropriate and be able to provide economic logic. Good luck! Chapters 1 – 12 The final exam will be cumulative and the exam will focus most heavily on the most important concepts as covered throughout the entire semester. This means there will be a substantial amount of questions about economic growth, the long run, and the full short run model. Therefore, you should consult Handout 4 and Handout 6 to review this material. However, some parts of the exam will also cover new material – see below. Chapter 13 The Debt-GDP Ratio The Government Budget Constraint Primary Deficit vs. Total Deficit How does the Debt-GDP Ratio change over time? Does government borrowing crowd out investment? The Problem of Health Care Spending Chapter 14 Individual Model of Trade Trade across Time Numéraire Autarky vs. Free Trade Comparative vs. Absolute Advantage Free Migration Difference of Benefits between Free Trade and Free Migration Trade Deficit vs. Trade Surplus Chapter 15 The Law of One Price Nominal vs. Real Exchange Rate Trade Deficit vs. Current Account Deficit Fixed Exchange Rates The Full Short Run Model with Net Exports Relationship between Interest Rates, Exchange Rates, and Net Exports The Policy TrilemmaChapter 16 Long Run vs. Short Run Tradeoffs The Big Picture Themes What don’t we