1. Mention and briefly explain what the results or macroeconomic objectives consist of. 2. Mention and briefly explain what macroeconomic instruments (Policy variables) consist of. 3. What do you understand by exports, imports and net exports. 4. For year 1 the workforce was 2,000,000 people. Of these, 1,900,000 people were employed. For year 2 the labor force increased by 5% with respect to the previous year and 1,950,000 people were employed. Calculate the unemployment rate for these two years. 5. The Consumer Price Index (CPI) for year 1 was 320.3 and for year 2 it was 310.1. Determine the rate of inflation (deflation). 6. Use the information below to answer the questions: Currency $US Mexico 10.6530 .093870 Japan 117.43 .008516

to. What does 10.6530 mean? b. How much is the value of $20 in Mexican pesos? c. If a shirt costs 105 Mexican pesos, what would its value be in dollars? d. If you see a fan in Japan that costs 560 yen, how much would it be worth in dollars?

7. Mention the 4 sources (types) of unemployment. 8. Define: underemployment, inflation, deflation, exchange rate, expansion, recession, deficit, surplus, expansionary fiscal policy, restrictive fiscal policy, expansionary (restrictive) monetary policy. 9. Who is the President of the current Federal Reserve System? 10. Explain the two approaches to calculate the GDP of a country. What are the components considered in each one? 11. Explain why GDP is not a perfect measure of economic well-being. (Mention the 7 factors that are not considered in its calculation.) 12. If the Real GDP for year 1 was $57,900 and for year 2 it was $60,000, determine the percentage of economic growth. 13. The CPI for the year 2005 was 110 and the Nominal GDP for that year was $67.500 million. Determine the Real GDP for that year. The base year is 2002. 14. How to achieve faster economic growth: Increase the growth rate of physical capital Increasing the pace of technological advancement Increase the growth rate of human capital This is achieved: stimulating savings stimulating research and development concentrating on high-tech (new) industries promoting international trade Improving the quality of education.