Questions:
1. Using a graph of Aggregate Demand and Aggregate Supply and Potential GDP, show and explain an unemployment gap.
2. Explain the differences between Nominal GDP, Real GDP and Potential GDP.
3. Using a graph of supply and demand for a single product, explain the forces which propel equilibrium back to the intersection of the two curves if the price is too hig OR too low.
4. Describe what you learn in college and university that may make you able to give the company more profits; that is, a worker who is able to produce more output per hour than a less educated worker without a college degree?
5. List and explain the conditions required for a person to be classified by the Census Bureau as an unemployed person and thus counted as unemployed for the official unemployment rate.
6. With regard to Aggregate Demand expenditures, list and explain four actions the Federal Government can take which will increase total, overall spending.
7 With regard to Aggregate Supply, list at least three OTBE factors from any source which will cause a shift in the Aggregate Supply [AS] curve and schedule.
8. Using a graph of a single product demand curve, show and explain the difference between a change in quantity demanded of a particular good resulting from a price change and a change in demand resulting from a new demand schedule.
9. List and explain each of the five factors which we included in the Other Things Being Equal [OTBE] list for the Law of Demand for a single product.
10. Draw the circular flow of money in the economy ONLY AS DISCUSSED IN CLASS; show and explain each component. Make sure you show both the Expenditure side and Income side.
11. List and explain at least four economic activities that are not included or calculated in GDP.
12. Explain the instructor's reasons for the term paper format.
13. Fully explain the Consumer Price Index: how it is derived and what it is used for.
14. Draw and explain a Phillips curve, which attempts to explain the relationship between inflation and unemployment.
15. Regarding inflation, list some activities and/or groups of people who are helped by it and who are hurt by it.