Chapter Review
Economics 201
Review of Chapters
23 - 26
Chapter Review
CHAPTER 23:
• Performance & Policy P.473-74: Real/Nominal GDP,
Unemployment, Inflation
• Modern Economic Growth P.474-76
• Uncertainty, Expectation & Shock P. 476-80: Demand and
Supply Shock, Flexible and Sticky Prices
• How Sticky Are Prices? P.480-82
Chapter Review
CHAPTER 24 :
• Assessing the Economy’s Performance P.486
• Gross Domestic Product P.486-88: Monetary Measure, Avoid Multiple
Counting, Excluding Nonproduction Transactions
• Expenditure Approach P.488-91: Personal Consumption, Investment
Spending, Government Expenditures, Net Exports
• Disposable Income P. 495
• Nominal vs. Real GDP P.497-99: GDP Index, Divide Nominal GDP by
Price Index
• Shortcomings of GDP P.499-500
Chapter Review
CHAPTER 25:
• Economic Growth: P.506-07: Growth as a Goal, Rule of 70,
Growth in U.S.
• Modern Economic Growth P.508-11: Uneven Growth,
Leader/Follower Countries
• Institutional Structures That Promote Growth P511-12
• Determinants of Growth P. 512-13:
Supply/Demand/Efficiency Factors
• Production Possibilities Analysis P513-14: Growth &
Production Possibilities, Labor & Productivity
Chapter Review
CHAPTER 25:
• Accounting for Growth P514-17: Labor Input vs. Productivity,
Technological Advance, Quantity of Capital, Education &
Training, Economies of Scale & Resource Allocation
• Rise of Average Rate of Productivity Growth P 518-20:
Reasons, Implications, Skepticism, Conclusion.
• Growth Desirable & Sustainable? P521-23: Antigrowth View,
Defense of Economic Growth
Chapter Review
CHAPTER 26:
• Business Cycle P527-29: Peak, Recession, Trough,
Expansion & Causation
• Unemployment P529-34: Measurement, Types, Full
Employment, Economic Cost (Okun’s Law, Unequal Burden)
• Inflation P.535-38: Measurement (CPI), Facts, Types, Core
• Redistribution Effects of Inflation P538-40: Nominal/real
Income, Who is Hurt or Unaffected?, Anticipated Inflation,
Other Issues
• Does Inflation Affect Output? P541-43: Cost Push/Demand
Pull & Real Output, Hyperinflation