Daniel Kaplan Macroeconomics Midterm Review Sheet February 24 2014 10 ID s 1 or 2 Computations 5 Short Answers 3 straight off of this 2 new ones must answer 4 2 Long Answers Definitions 1 Demand Curve 2 Quantity Demanded 3 Supply Curve 4 Quantity Supplied a Function that shows the quantity demanded at different prices a Quantity buyers are willing and able to purchase at a particular price a Function that shows the quantity supplied at different prices a Quantity producers are willing and able to supply at a particular price 5 Market Equilibrium a The intersection of the supply curve and the demand curve 6 Nominal Gross Domestic Product a The market value of all final goods and services within a country s borders in a year 7 Nominal Gross Domestic Product per capita a Nominal GDP divided by the country s population 8 Real Gross Domestic Product a GDP measured using constant year prices 9 Real Gross Domestic Product per capita a Real GDP divided by the country s population 10 Growth rate of nominal GDP per capita a GD Pt G D Pt 1 GDP t 1 11 Growth rate of real GDP per capita a Grgdp G ngdp G price n b Growth per capita nominal GDP growth inflation pop growth 12 The long run average growth rate of real GDP per capita in the US a 1 8 per year nominal is 5 per year 13 Identify the expenditure side components of GDP Y C I G Ex Im a b Consumption of households investments by firms government consumption investment exports imports 14 Identify two proximate factors that determine real GDP per capita 15 Identify two deep factors that determine real GDP per capita a Capital per worker b Education per worker c Specialization Institutions a b Trade c Property rights a Property rights structure b Free trade 16 Identify two economic institutions that can affect real GDP per capita 17 Identify two political institutions that can affect real GDP per capita a Ease of starting business competitive open market b Property rights 18 Know the four equations that characterize the Solow growth model a Production function b Savings function investment function c Depreciation function d Capital accumulation function Delta K I d 19 Define steady state in the context of the Solow growth model a When catch up growth is done and level of k is reached then growth returns to the normal rate 20 List four development traps a Conflict b Resource curse c Landlocked d governance