• Explain the welfare effects of inflation in a given scenario.
• Explain the differences between the GDP deflator and the CPI.
• Compare the value of a dollar in the past to the value of a dollar today.
• Describe the relationship between the nominal interest rate, inflation, and the real interest rate.
• Explain how productivity influences economic growth.
• Describe the catch-up effect.
• Explain how investments in education and R&D impact growth.
• Explain the impact of the enforcement of property rights on growth.
• Explain how savings and investment impact growth.
• Explain how government structure and stability impact growth rates.