1) a) Define GDP and distinguish between a final good and an intermediate good. Provide examples.

b) Why does GDP equal aggregate income and also equal aggregate expenditure?

c) What are the distinctions between domestic and national, and gross and net?

d)What is the expenditure approach to measuring GDP?

e) What is the income approach to measuring GDP?

f) What adjustments must be made to total income to make it equal GDP?

g) What is the distinction between nominal GDP and real GDP?

h) How is real GDP calculated?

2)a)Distinguish between real GDP and potential GDP and describe how each grows over time.

b) How does the growth rate of real GDP contribute to an improved standard of living?

c) What is a business cycle and what are its phases and turning points?

d) What is PPP and how does it help us to make valid international comparisons of real GDP?

e) Explain why real GDP might be an unreliable indicator of the standard of living.

3)a) What distinguishes an unemployed person from one who is not in the labour force? b)Describe the trends and fluctuations in the Canadian unemployment rate since 1960. c)Describe the trends and fluctuations in the Canadian employment-to-population ratio and d)labour force participation rate since 1960. Describe the alternative measures of unemployment.

4)a) Define frictional unemployment, structural unemployment, and cyclical unemployment. Give examples of each type of unemployment.

b) What is the natural unemployment rate?

c) How does the natural unemployment rate change and what factors might make it change?

d) Why does unemployment arise and what makes some unemployment unavoidable?

5)a) What is economic growth and how do we calculate its rate?

b) What is the relationship between the growth rate of real GDP and the growth rate of real GDP per person?

c) What is the CPI and how is it calculated?

d) How do we calculate the inflation rate and what is its relationship with the CPI?