1. Given an example, calculate a country's unemployment rate.
2. By how much would a Keynesian change in government purchases, shift the Aggregate demand curve.
3. What would a contractionary fiscal policy result in?
4. While we have a budget deficit as per the crowding out concept what would happen to interest rates and borrowing?
5. When faced with a recession, using the supply side policy what should the government do.
6. According to Laffer curve what would be the impact of tax rates on tax revenues?
7. Given an example, calculate the real growth in a year.
8. Given an example, know how a person is measuring the GDP for a year. Hint: Whether this person is using real values or nominal values.
9. What is the impact of bias in CPI calculations?
10. Given an example for CPI index for two years, be able to identify the growth or decline.
11. In an example, given real income and CPI index, be able to calculate the real income.
12. Know what happens to the price and demand for substitute and compliment products.
13. Given an example, figure out the Net National Product.
14. Be able to identify what is considered an investment component of GDP.
15. Given statements, be able to distinguish Positive vs. Normative statements.
16. What is a rational approach?
17. What does it mean that an economy is based on private enterprise?
18. Know the impact of increase and decrease in Aggregate demand on the economy
19. What policies should the government follow in recession and inflationary periods?
20. In the AS-AD model when would cyclical unemployment happen
21. Study AS-AD model and know what happens in recession and inflation to AS, AD, and price level
22. Know about Full Employment
23. Know the concepts of Supply and Demand
24. When would Excess demand happen in a market
25. Given an example be able to state what has happened to the supply and demand curves and the equilibrium price and quantity during a particular time period
26. Given a graph of the Demand and Supply curves in a market, be able to assess at a particular price and quantity how much the price must change for the market to be in equilibrium
27. Know the example of different types of unemployment
28. Relationship between Inflation and the Economy. Also, know when inflation interferes with real wages.
29. Study Fiscal policy
30. How GDP gap increases and shrinks
31. What are examples of contractionary fiscal policy?
32. As per Keynesian Theory, what policies can correct inflation and unemployment in the economy?
33. If GDP is below Potential GDP by $200 million, what can the government do to restore equilibrium?
34. As per Neoclassical theory what can stimulate the progress of the economy?
35. When given the Aggregate demand and the Aggregate supply, which one shift and by how much in the short run?
36. If an economy is at potential GDP, and it intends to grow, then as per Neoclassical theory what factor can increase the economy's output.
37. According to Neoclassical theory, why a tax cut will not shift the AD curve?
38. Know an example of rational expectations.
39. If Ricardian equivalence exists in an economy, then if budget deficit goes up by 100 what happens to savings?
40. In an example, be able to figure out what is the result of a price ceiling.
41. In face of high consumer confidence what factor and how can it shift the AD?
42. When shown the graph of a shift the Supply curve or Demand curve know what factors can cause these shifts.
43. In an example, be able to state what would be a rational decision in changing the output after the change in the market price.
44. What is Phillips Curve tradeoff?
45. Given a situation, know how Aggregate Demand curve changes.
46. Know how to determine the Opportunity Cost from a PPF curve.
47. What is allocative Efficiency?
48. Given an example, know the difference between comparative advantage and absolute advantage.
49. What are the goals of the AD-AS model?