1.GDP is a key concept in Macroeconomics.  Please review the material covered in the topic called Measuring Domestic Output and National Income.             a.What is the definition of GDP?              b.Tell me the level of real GDPand real GDP per capitafor the past 5 yearsand tell me how you think we were doing in each of those years.             c.Go to topic called Economic Growth and look at slide 3 and tell me if the falling trend line is a good or bad thing for the nation andwhy.  Please be thorough!             d.List and explain in detail,the 3 different approaches to calculating GDP.                 i.List and explain the approaches and how you would use each to calculate GDP.             e.List and explain 4 types of transactions that would not be included in GDPand why they should be omitted.                  i.Look in the notes and find 4types of transactions that are excluded from the computation of GDP and write them down along with the explanation of each and why they are not included.             f.Thoroughly explain the 4 components ofGDP and relate each of those components to the Circular Flow modelwith government and international trade.              g.Nominal versus real GDP.                 i.Explain the difference between nominal and real GDP.                 ii.Explain in detail, howto calculate real GDP, including the factors used in the calculation.                      1.Look in the notes to find this –very straight forward.                 iii.Explain in detail the CPI since it is used to make the conversion.The following url should help -https://www.bls.gov/cpi/                 iv.Explain what you can do with real GDP that you cannot do with nominal GDP and explain why that is important.             h.GDP and GDP per-capita.                 i.Explain the difference between GDP and Per CapitaGDP;                 ii.Explain how to calculate Per CapitaGDP, and how Per CapitaGDP canbe used. 2.Economic growth. Two key sources of economic growth have been increases in resources and increases in productivity.   Please review the topic calledIntroduction to Economic Growth and Instability.             a.Please list 5 factors that might contribute to falling U.S. GDP growth ratesand explain how each factor might cause falling GDP growth rates.             b.Explain in detail, what we could do to prevent each of those 5 factors causing our GDP growth rates to fall.               c.Please list 5 factors that might contribute to rising U.S. GDP growth rates and explain how each factor might lead to rising U.S.GDP growth rates.             d.Explain in detail, what we could do to make each of the 5 factors cause our GDP growth rate to increase. 3.The Business Cycle and Built in stabilizers.              a.What can the business cycle tell you about the status of our economy today and what we might experience over the next 6 months. (please providedetail)?             b.Given what yo.

1. 1.GDP is a key concept in Macroeconomics. Please review the
material covered in the topic called Measuring Domestic Output
and National Income.
a.What is the definition of GDP?
b.Tell me the level of real GDPand real GDP per
capitafor the past 5 yearsand tell me how you think we were
doing in each of those years.
c.Go to topic called Economic Growth and look at slide
3 and tell me if the falling trend line is a good or bad thing for
the nation andwhy. Please be thorough!
d.List and explain in detail,the 3 different approaches to
calculating GDP.
i.List and explain the approaches and how you would
use each to calculate GDP.
e.List and explain 4 types of transactions that would not
be included in GDPand why they should be omitted.
i.Look in the notes and find 4types of transactions
that are excluded from the computation of GDP and write them
down along with the explanation of each and why they are not
included.
f.Thoroughly explain the 4 components ofGDP and
relate each of those components to the Circular Flow modelwith

2. government and international trade.
g.Nominal versus real GDP.
i.Explain the difference between nominal and real
GDP.
ii.Explain in detail, howto calculate real GDP,
including the factors used in the calculation.
1.Look in the notes to find this –very straight
forward.
iii.Explain in detail the CPI since it is used to make
the conversion.The following url should help -
https://www.bls.gov/cpi/
iv.Explain what you can do with real GDP that you
cannot do with nominal GDP and explain why that is important.
h.GDP and GDP per-capita.
i.Explain the difference between GDP and Per
CapitaGDP;
ii.Explain how to calculate Per CapitaGDP, and how
Per CapitaGDP canbe used.
2.Economic growth. Two key sources of economic growth have
been increases in resources and increases in productivity.
Please review the topic calledIntroduction to Economic
Growth and Instability.

3. a.Please list 5 factors that might contribute to falling
U.S. GDP growth ratesand explain how each factor might cause
falling GDP growth rates.
b.Explain in detail, what we could do to prevent each of
those 5 factors causing our GDP growth rates to fall.
c.Please list 5 factors that might contribute to rising
U.S. GDP growth rates and explain how each factor might lead
to rising U.S.GDP growth rates.
d.Explain in detail, what we could do to make each of
the 5 factors cause our GDP growth rate to increase.
3.The Business Cycle and Built in stabilizers.
a.What can the business cycle tell you about the status
of our economy today and what we might experience over the
next 6 months. (please providedetail)?
b.Given what you have learned about the U.S. Business
cycle over the past 60 years, please explain 4 ways you can use
that information to enhance your odds of achieving future
personal success.Please do not talk about your financial
portfolio or playing around with the stock market.

4. c.Explain in some detail the 4 phases of the business
cycle, including the characteristics of each. Please don’t include
Depression as one of them. Be thorough! You should have at
least 4 characteristics for each phase! Include in your discussion
how each phase of the business cycle might impact your life and
what you should do to minimize the negative impacts on your
future.
d.Explain in detail, 5 possible causes of change in the
direction of the business cycle. You are looking for things that
are out of the control of the government. Do not talk about
fiscal or monetary policy tools here. Don’t say inflation or
recession!
e.Built-in Stability
1.Explain the difference between discretionary and
non-discretionary fiscal policy. Include in your explanation the
differences in the roles of the three branches of government in
each case.
2.Explain the key relationships that supports the
built-in stabilizer which were provided in the slides and lecture.
3.Explain thoroughly how the built-in stabilizer
works to reduce inflation. Need to see the step by step of what
happens.
4.Explain thoroughly how the built-in stabilizer
works to reduce recession. Need to see the step by step of what

5. happens.
5.Explain why the presence of the built-in-stabilizer
is important to managing the macro economy.
4.Unemployment and Recession Please review the topic called
Introduction to Economic Growth and Instability.
a.Explain in detail, how the unemployment rate is
calculated.
b.Explain in detail, how we define the employed, the
unemployed, and who is in the labor force?
i.The link BLS website should help -
http://www.bls.gov/news.release/empsit.t15.htm
c.List and explain (don’t just copy and paste)the various
unemployment rates used by the BLS, and indicate which one of
the 6 is the official unemployment rate.
i.This link to the BLS website should help -
http://www.bls.gov/news.release/empsit.t15.htm
d.There has been a historic disparity between
unemployment rates for Black, Hispanic, and White workers.
i.Please provide detailed explanations of 5 reasons
the Black and Hispanic unemployment rates are always
significantly higher than the unemployment rate for Whites.

6. ii.Explain in detail, 1 thing that should be done to
correct each of the things that cause the problem. Be sure you
explain how each recommendation would actually lead to
solution of the problem. Please be very thorough with this.
e.The 3 types of unemployment.
i.List and explain the 3 types of unemployment that
we discussed. Include the characteristics of each and the role of
skills for each.
ii.Explain how each type contributes to growing
income and wealth inequality.
1.You would want to list and explain the 3 types.
You will find everything on the 2 or 3 slides plus the audio
provides additional insight.
f.List and explain thoroughly, 3 examples of significant
economic costs of unemployment and what we might do to
reduce those costs.
g.Unemployment and how to use Fiscal Policy to
address Recession. Please review the topics called Fiscal Policy
and The Aggregate Demand and Aggregate Supply Model
Background for this question:

7. The US economy is currently experiencing recession
according to the Federal Government. You can use only Fiscal
Policy and the AD–AS model.
i.List and explain the 3 Fiscal Policy tools covered
in the slides that apply to fixing recession, and indicate the one
tool that you want to use to attack the recession problem?
(Please note that transfer payments would come
under the heading of government spending! So don’t use it as
one of your 3 tools of fiscal policy.)
ii.Explain why you selected the tool and not the
others. Refer to your decision criteria.
1.Consider the pros and cons of each of the 3
tools and tell me why you picked the one you picked and why
youdid not pick the other option(s).
iii.Explain how your tool would solve the recession
problem and what effects your solution would have on at least
five key economic variables. BE SPECIFIC! I WANT TO SEE
THE DETAIL. USE THE WHAT HAPPENS NEXT
APPROACH!
1.Explain how your choice of tools would work
to solve the problem of recession. Start with the
implementation of your tool and then list step by step what
happens next, until you arrive at the appropriate impact on
GDP. Be sure you provide the detailed step by step flow.
2.Using that approach allows the list the key
economic variables and how each would be affected, to pop

8. right out.
5.Inflation Please review the topic called Introduction to
Economic Growth and Instability
a.Whatis inflation and how can you use the CPI datato
calculate it?
b.List and explain the two types of inflation.
c.Give two examples of who might be hurt by inflation
and why.
d.Give two examples of who might be helped by
inflation and why.
e.Inflation and how to use Fiscal Policy to address the
problem of Inflation. Please review the topic called Fiscal
Policyand The Aggregate Demand and Aggregate Supply Model.
Background for this question:

9. Assume the US economy is currently experiencing high
rates of inflation according to the Federal Reserve. Use only
FiscalPolicy and the AD –AS model.
i.List and explain the 3 Fiscal Policy tools covered in
the slides and indicate which tool you will use to attack the
inflation problem?
1.List the 3 possible choices and then just tell me
which of the tools you would select. Just write it down.
ii.Explain why you selected this particular tool and not
the others. Refer to your decision criteria.
1.Consider the pros and cons of each of the 3 tools
and tell me why you picked the one you picked and why you did
not pick the other option(s).
iii.Explain how your solution would work to solve the
problem of inflation and what effects your solution would have
on at least five key economic Variables? BE SPECIFIC! I
NEED TO SEE THE DETAIL. USE THE WHAT HAPPENS
NEXT APPROACH!
1.Explain how your choice of tools would work to
solve the problem of recession. Start with the implementation
of your tool and then list stepby step what happens next, until
you arrive at the appropriate impact on GDP. Be sure you
provide the detailed step by step flow.
2.Using that approach allows the list the key
economic variables and how each would be affected, to pop

10. right out.
6.Aggregate Demand Please review the topics called The
Aggregate demand and aggregate supply model and the
Aggregate Expenditures model.
a.List and thoroughly explain the three reasons the
Aggregate Demand curve is downward sloping.
i.In your explanation, please start with an increase
in prices and work through to a decrease in AD.
b.List and explain in detail, the components of
Aggregate Demand and explain each of their determinants.
i.You studied the 4 components. List and explain
them and under each list and explain the determinants of each.
c.Explain how the Aggregate Demand-Aggregate Supply
Model differs from the Aggregate Expenditures model
i.Put the two models sideby side, look for the
differences and explain them.
7.The basic macroeconomic relationships introduced a number
of key concepts. Please review the topic called Basic
Macroeconomic Relationships.
a.Please explain in detail the relationships between
income, consumption, savings, and GDP.

11. i.Define each
ii.Explain the relationship between these items.
b.Please explain in detail the relationships between
interest rates, expected rates of return, investment, and GDP.
Be specific and be thorough.
i.All of the necessary info is provided in the slides
and audio lectures
c.Please explain the concept of the multiplier,
including:
1.What information is required to calculate the
spending multiplier
a.Refer to the slides, the info is there. Look
closely –don’t miss this!
2.List and explain the 3 different multipliers that
we discussed.
a.Again, refer to the slides, it’s all there.
3.Explain in detail how the multiplier works to
impact GDP. Be specific!
a.Use the chart from the slide set as the basis
of your explanation. Start with the injection of money into the
economy and then how that affects household income and then

12. spending via the mpc. Go on to discuss the rounds of spending,
etc. and how the ultimate impact on gdp is amplified by the
multiplier effect.
8.The Aggregate Supply curve shows the level of real output
that the business sector will produce at various possible price
levels. Please review the topic called The aggregate demand and
aggregate supply model.
a.Explain the Long Run Aggregate Supply curve and the
assumptions that support its shapeat full employment.
i.List the assumptions, discuss the shape of the LR
AS curve and why it takes that shape.
b.Explain the Short Run Aggregate Supply curve and the
assumptions that support its shape.
i.List the assumptions, discuss the shape of the SR
AScurve and why it takes that shape. Discuss the difference in
the shape of the curve at levels below full employment GDP and
what you see at levels above full employment GDP.
9.Fiscal policy can be called on to correct conditions of
recession and inflation. Please review the topic called Fiscal
Policy.
a.List and explain the 3 tools of Fiscal Policy that would
be appropriate for addressing recession and explain in detail
how each would ultimately impact aggregate demand and
equilibrium GDP. Be specific! Please consider transfer

13. payments as part of government spending, so don’t claim it is a
tool.
i.You would want to list and explain the 3 tools
and how each (step by step) would affect AD andequilibrium
gdp.
b.List the 3 tools of Fiscal Policy that would be
appropriate for addressing inflation and explain in detail how
each would ultimately impact aggregate demand and equilibrium
GDP. Be specific!
i.You would want to list and explain the 3 tools
and how each (step by step) would affect AD and equilibrium
gdp.
10. We discussed four problems that complicate the application
of fiscal policy. Please review the topic called Fiscal Policy.
a. List and thoroughly explain these 4 problems,
including how each would likely impact the overall
effectiveness of fiscal policy. Be specific! Be thorough!
i.You should list the 4 problems associated with
Fiscal Policy that were listed in the slides and explain the
factors associated with each. And as you address each problem,
discuss how each would impact the effectiveness of fiscal
policy.