1. Economics Macro Review
Unit 4

2. GDP What does GDP stand for? What does GDP measure?
What is the formula for GDP?
What two factors are not counted in GDP?
What is the difference between real and nominal GDP?

3. CPI What does CPI stand for? What does CPI measure?
What is the formula for CPI?
What is inflation and deflation?
What is the formula for the rate of inflation?

4. What is the CPI for year 1, 2, and rent of year 3?

5. Find the rate of inflation between years 1 and 2, and years 3 and 4
200
212
260
249

6. Aggregate Supply and Demand
What is aggregate supply?
What is aggregate demand?
Draw what a aggregate demand and aggregate supply graph would look like.

7. What is the formula to define the rate of unemployment?
What is unemployment?
What is the formula to define the rate of unemployment?
What are the three types of unemployment and give me an example of each.

8. Label the parts of the business cycleD

9. Business Cycle
What is a leading economic factor of the business cycle?
What is a lagging economic factor of the business cycle?
Would the following be leading or lagging?
Stock market crashes over night causing the economy of panic and downturn.
Unemployment becomes a trend due to the economy.
Interest rates increase significantly due to an increase in peoples income.

10. Answer
What is the main different between national debt and governmental deficit?