PRINCIPLES OF MACROECONOMICS
Study Guide Five: Chapter Six
February 12, 2014
NOTE: THIS MATERIAL IS FOR THE SECOND EXAM (NOT THE FIRST)
Essay Questions
1.
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5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
According to Gregory Mankiw, list three reasons why economists appear to disagree. (Check posted slides)
According to Gregory Mankiw, list five areas where economists generally agree. (Check posted slides)
In one sentence, what is the difference between classical and Keynesian economics?
The study of macroeconomics can focus on the short-run or the long-run. Under which focus do we consider business
cycles?
a.
Define Real GDP
b.
Define Per Capita Income
c.
What is the primary measure of growth?
According to lecture, prior to the advent of capitalism, what was generally the rate of economic growth?
In general, how fast does the U.S. economy grow per year?
According to lecture (and EH.net), in what decade did NOMINAL per-capita GDP in the
United States surpass:
a.
$1,000
b.
$2,000
c.
$5,000
d.
$10,000
e.
$20,000
f.
$30,000
g.
$40,000
http://eh.net/
(go to How Much is That and then to The Annual Real and Nominal GDP for the U.S.)
or go to the following
http://measuringworth.com/usgdp/
According to lecture (and EH.net), in what decade did REAL per-capita GDP in the
United States surpass:
a.
$1,000
b.
$2,000
c.
$5,000
d.
$10,000
e.
$20,000
f.
$30,000
g.
$40,000
http://eh.net/
(go to How Much is That and then to The Annual Real and Nominal GDP for the U.S.)
or go to the following
http://measuringworth.com/usgdp/
For the past 100 years…
a.
How fast has Real GDP grown each decade?
b.
How fast has Real GDP per-capita grown each decade?
c.
Has the United States ever experienced a decade where real per-capita income did not increase?
If we assume the economy will continue to grow as it has for the past 100 years, what will Real GDP and
Real GDP per capita be in
a.
2021
b.
2031
c.
2041
d.
2051
e.
2061
f.
2071
g.
2081
h.
2091
i.
2101
j.
2111
How do business cycles after World War II compare to what we saw before World War II? What explains the
difference?
Define
a.
Unemployment
b.
Cyclical unemployment
c.
Structural unemployment
When did unemployment officially become an issue the U.S. government was expected to focus upon?
What is the natural rate of unemployment (or target rate of unemployment or NAIRU)?