AP Macroeconomics Study Guide – Version 1.00 Created by Charles Feng I. Basic Economic Concepts Economic Goals 1. Economic growth – produce more and better goods and services 2. Full employment – suitable jobs for all citizens who are willing and able to work 3. Economic efficiency – achieve the maximum production using available resources 4. Price-level stability – avoid large fluctuations in the price level (inflation + deflation) 5. Economic freedom – businesses‚ workers‚ consumers have a high
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ECO202 – Macroeconomics Module 2 Case Assignment Dr. Herbert Weinraub GDP: Questions: 1. Assume that consumer spending is $1‚000‚ government expenditures are $300‚ investments by industry are $150‚ and the excess of exports over imports is $200. Compute the GDP. (Please show your work) The basic formula for calculating the GDP is: Y = C + I + E + G C=1000; I=150; E=200 and G=300 Y=1000+150+200+300=1650‚ Y=1650 2. If we are able to increase our domestic energy production‚ and that allows
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Macroeconomic Conditions and Selected Trends Gross Domestic Product (GDP) is an economic indicator used to measure a country’s total output. It includes everything produced by all the people and companies in the country. In order to compare GDP from one year to the next it is important to use what is known as Real GDP. Real GDP makes a distinction by forgoing income from U.S. companies and people outside the country‚ which would contribute to GNI‚ removing the effects of inflation and only counting
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AP Macroeconomics Summer Reading Chapter 1: The two basic assumptions that economists make about individuals and firms are that individuals act to make themselves as well off as possible by maximizing their own utility (which makes them better off in the long run)‚ and firms attempt to maximize profit by taking inputs and combining them in a way that adds value. Prices help measure how badly costumers want a product and how much labor
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Production Possibilities Curve Unit 1 : Macroeconomics National Council on Economic Education http://apeconomics.ncee.net Production Possibilities Curve Constant Opportunity Cost Decreasing Opportunity Cost Unit 1 : Macroeconomics National Council on Economic Education http://apeconomics.ncee.net Absolute Advantage and Comparative Advantage • ABSOLUTE ADVANTAGE One individual or nation can produce more output with the same resources as another individual or nation. • COMPARATIVE ADVANTAGE
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1) Use the AS/AD framework to show the separate effects on GDP‚ inflation and public sector borrowing on any single national economy of: a) cut in public spending b) an increase in the rate of VAT (sales tax) c) a slowdown in the GDP growth of less developed economies. (Make sure that you include clear and appropriate diagrams for this question) According to Begg and Ward (2009) fiscal policy is the government’s decisions regarding taxation and spending to influence level
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Principles of Macroeconomics‚ 9e - TB1 (Case/Fair/Oster) Chapter 14 The Labor Market in the Macroeconomy 14.1 The Labor Market: Basic Concepts 1 Multiple Choice 1) The functioning of the labor market primarily affects the shape of the A) aggregate demand curve. B) money demand curve. C) aggregate supply curve. D) planned investment curve. Answer: C Diff: 1 Topic: The Labor Market: Basic Concepts Skill: Conceptual AACSB:
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Monroe College Instructor: Carlo Auguste Take home test 2 Student name : James Demesvar Macroeconomics I. Current event questions a. Summarize the history (creation) of the Central Bank of the US Re: The First Bank of the United States was founded after the revolutionary war in 1795 - 1797 . The United States was in debts cause by the War. Therfore‚ President Alexander Hamilton advised of the bank to handle the colossal war debt and also create some kind of currency. b. Give the full
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Exhibit 3.1 20000211DL-ZXL350_8(ECO-PERF) OUTPUT GROWTH IN SELECTED COUNTRIES Country GDP per capita growth (CAGR) GDP per capita at starting point (% of US) China (1990-97) 10.0 5 Korea (1970-85) 8.2 6 Thailand (1985-95) 7.8 10 Indonesia (1988-97) 5.9 6 India (1993-99) 4.2 4 Source: World Development Indicators; The Economist (2000) Exhibit 3.2 20000211DL-ZXL350_8(ECO-PERF) Indexed to US in 1996 = 100‚ 1990-99 BREAK-UP OF INDIAN
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Project Paper 1. What is the gross domestic product? Gross Domestic Product‚ or GDP‚ is the total market value of final goods and services produced within an economy in a given year. It is the most common measure of an economy’s total output. 2. When prices change‚ how do we measure real income? When prices change we measure real income with 3. What is unemployment? Why can’t it be driven down to zero? Unemployment is when you don’t have a job. Unemployed people are those who don’t have a
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