ECON 104 02 Spring 2019 Exam 2 Study Guide The second exam will be from 7 00 9 00 p m on Wednesday April 3rd in multiple locations Exam 2 Logistics will provide the details This exam will include short answer questions and problem solving Short answer questions will be drawn from the list provided and the problem solving component will follow the themes identified below Bring a photo ID and a simple calculator to the exam but do not bring your cell phone Neither graphing calculators nor cell phone use will be permitted during the exam You will be expected to show picture identification when you hand in your exam Don t neglect the reading you are responsible for chapters 7 8 9 in Case Fair Oster and both the Greider and Perry parts I through III readings Short Answer Topics Unemployment cyclical secular trends on time series graphs presented in lecture Sources of Inflation Redistributive Consequences of Inflation and connection to the Greider reading Non Income Determinants of Consumption Determinants of Planned Investment Components of Actual Investment Actual Investment vs Planned Investment Paradox of Thrift The Classical Theory of Deficits and critique of the model The National Debt Budget Deficits contexts To prepare for the short answer section of the exam focus on three aspects of each topic 1 Can you define explain the concept including the use of appropriate graphs 2 Can you apply the concept to a specific set of circumstances 3 Can you evaluate the concept s importance and or its relationship to other material in the course Problem Solving Themes Working with unemployment measures calculating U 3 U 5 and U 6 rates Working with the Keynesian Cross Model one two and three sectors Working with the multipliers government spending tax and balanced budget