Lakeland Community College

Department of Economics

Macroeconomics-Dr. Santos
First Long Exam
Review Items: Coverage: Ch: 1,2,3,7,8,9 (unemployment) plus notes and WSJ

I. Introduction

A. What is macroeconomics
B. Branches of Economics
C. Positive vs. normative economics
D. Production Possibility Frontier
E. Law of Demand
F. Law of Supply
G. Changes in Demand vs. Changes in Quantity Demanded
H. Changes in Supply vs. Changes in Quantity Supply
I. Market Equilibrium
J. Dynamic Shocks

II. National Income Accounting

A. Definition
B. Expenditure vs. Income Approach
C. Problems Solving
D. Mismeasurement problems
E. Underground Economy
F. Real vs. Nominal GDP

III. Inflation and Unemployment

A. What is inflation
B. Inflation Rate formula
C. Types of Price Indexes
D. Types of Inflation
E. Consequences of Inflation
F. Hyperinflation
G. Stagflation
H. Types of unemployment
I. Natural Rate of Unemployment
J. Underemployment
K. Canadian vs. US Unemployment