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Macroeconomics Exam Study Guide: Key Topics and Concepts

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Expenditure Approach for Measuring GDP

Nominal GDP and Real GDP

Shortcomings of GDP

Other Measures of Total Production and Total Income

Labor Force and Unemployment

Types of Unemployment

Inflation and Consumer Price Index (CPI)

Using CPI to Adjust for Inflation

Nominal Interest, Real Interest, and the Fisher Equation

Costs of Inflation: Shoe-leather Costs and Menu Costs

Long-Run Economic Growth

Growth Rates and the Rule of 70

Investment, Savings, and the Financial System

Business Cycles and Their Characteristics

Aggregate Demand

Long Run Aggregate Supply

Short Run Aggregate Supply

AD-AS Model: Equilibrium in the Short Run and Long Run

The Functions of Money; The Kinds of Money

Defining the Money Supply: M1 and M2

Required Reserves and the Deposit Multiplier

Introduction to the Federal Reserve

The Federal Reserve and the Money Supply

Monetary Policy and Aggregate Demand

Federal Reserve Policies during the 2007-2009 Recession

Introduction to Fiscal Policy

Expansionary and Contractionary Fiscal Policy

Government Purchases and the Multiplier Effect

Taxes, the Multiplier Effect, and Automatic Stabilizers

Long Run Effects of Fiscal Policy

Balance of Payments: Introduction

Sources of Comparative Advantage

Tariffs

Import Quotas and VERs

Arguments Against International Trade