Macro Learning Objectives for questions over Exam 1 Form A

 

 PCM

 ECON 2301 MACROECONOMICS   

Chapter 5

Below you will find the learning objective, concept, idea, term, or theory that each question on the exam will cover. The numbers in the list refer to the question number on Exam 1 that will test your knowledge of that specific learning objective. Each of these topics/learning objectives is discussed in the textbook in the order that they are listed below.  A much better understanding can often be attained by working through the "active graphs" and "smart graphs" connected to many of these objectives in the online material.

  After reading this chapter, you should be able to:
  1. List the three main macroeconomic goals government policy is concerned with, describe what they are, and explain why they are important. (Section 5.1)
  2. Give the general definition for the Gross Domestic Product and how it can be calculated using the expenditure approach, and explain what is included in its measure and what is not included focusing especially on financial transaction, intermediate goods (section 5.2), and the underground economy (section 5.3).
  3. Explain in detail what is meant by and is included in the following two categories of the expenditure approach: 1) consumption; and 2) investment. (Section 5.2 and the Appendix)
  4. Explain in detail what is meant by and is included in the following two categories of the expenditure approach: 1) government purchases; and 2) net exports. (Section 5.2 and the Appendix)
  5. Show how to calculate GDP using the income approach, explain what is meant by the value added approach, and discuss the difference between GDP and GNP. (Section 5.2 and 5.3 and the Appendix)
  6. Explain the differences between Real GDP and Nominal GDP and how they are related. (Section 5.3)
  7. Describe the phases of the business cycle, and how it is defined. (Section 5.4)
  8. Define what is meant by leading indicators, lagging indicators, and coincidental indicators. (Section 5.4)
  9. Discuss what the fiscal imbalance is, and explain the debate between those who support static scoring and those who support dynamic scoring. (Section 5.5)
  10. Knowledgably discuss the details of the National Income and Products Accounts. This is found in the on-line appendix to Chapter 5; a link to this material can also be found in the Course Documents folder of Blackboard.