1. How is economic growth measured?
2. What is real GDP per capita?
3. Why is productivity important to economic growth?
4. What percent of growth comes from productivity increases? What percent comes from increased uses of
resources?
5. Who is and isn't included in the official labor force? And why does this create controversy?
6. How is the unemployment rate calculated? What are the two measure of unemployment discussed in class
and how to they differ?
7. Who are discouraged workers?
8. What are the three types of unemployment and how is each defined?
9. What full-employment rate of unemployment (natural rate of unemployment)? What do economists believe
is happening to this rate and why?
10. How is inflation measured?
11. What causes demand-pull inflation?
12. What causes cost-push inflation?
13. Who benefit and who loses from anticipated/unanticipated inflation?
14. What's the definition and effects of hyperinflation?
15. What are the determinants of aggregate supply and how do changes in those determinants affect the curve?
16. What are the determinants of aggregate demand and how do changes in those determinants affect the
curve?
17. What is the long-run aggregate supply curve? Where is it and how/why does it move?
18. What are inflationary and recessionary gaps and what are their significance?
19. What is productivity and how can it be enhanced?
20. How does productivity affect the economy?
21. What are the basic functions of money?
22. What is the structure and responsibilities of the Federal Reserve System?
23. What type of officials and how many are members of the Federal Open Market Committee (FOMC) and what does it do?
24. What is the formula for the simple money multiplier?
25. What are excess reserves?
26. How is the simple money multiplier formula used to determine total possible money creation?
27. What are open-market operations and what is their goal?
28. What are the federal funds and discount Rates? And what are they used for?
29. What is the reserve requirement and what is its purposes?
30. What tools would be used (and how) for expansionary monetary policy?
31. What tools would be used (and how) for contractionary monetary policy?
32. What is the significance of an inverted yield curve? What does the yield curve predict and measure?