exam prep
exam info
10-15 multiple choice not more then 15
4-5 short-answer questions
do worksheets and problems
GO BACK TO MINI QUIZES
memorize key formulas like calculating inflation rate
one page cheat sheet only formulas no examples or concepts
main topics in exam
whats GDP, real GDP, calculating using the SPENDING METHOD/ APPROACH (EXPENDITURE APPROACH) ONLY
inflation will ask to calculate CPI and inflation
multiple choice ask about effect, links between unemployment and inflation
understand 3 types of unemployment , structural, fi
impact unemployment has
forumlas
Gross national product (GNP). GNP= GDP+ net income from abroad
this is the only time we will use net income from abroad, beyond the borders of a country. measurers production by countries citizens no matter where they are located
Net national product (NNP. NNP= GNP- Depreciation
accounts for wearing out of capital equipment (capital is things like: factories, buildings )
Net domestic product (NDP). NDP = GDP - depreciation
accounts for wearing out of capital equipment (capital is things like: factories, buildings )
Gross domestic prodcut: GDP= C + I + G +_X_- Im
Rule of 70: 70/x
x is growth rate
depreciation:
if depreciation > new investment → capital stock is shrinking
if deprecation < new investment → capital stock is increasing
business inventory counts as investments
you don’t count deprecation in GDP if were looking for just GDP only using it for net DP
okun’s law
for every additional 1% increase of the unemployment rate, real GDP declines by 2%
rule of 70
numbers of years it will take to double the value of the variable: 70/x with x being the growth rate