1. Midterm Review Closed book, closed note, you can bring calculator 4 questions Content: Everything We have learned so far in class

2. Question 1 Basic concepts and facts Measuring Real GDP Measuring Price index Measuring GDP and GNP Three approaches Some important identities

3. GNP = GDP + NFP Yd= Y + NFP + TR + INT – T Yd= Sp+ C Sg = T – TR – INT – G D = –Sg S = Sp+ Sg= Y + NFP – C – G Y = C + I + G + NX

4. S = I + NX + NFP S = I + CA

5. Important business cycle facts Volatilities, Comovement

6. Question 2 Partial equilibrium How to formulate consumers’ problem and firms’ problem How to solve it

7. Question 3 General Equilibrium Understanding graphs I presented in the lecture.

8. Question 4 Economic growth Solow model Assumption in Solow model How to derive capital evolution equation Understand the steady state equilibrium and know how to analyze the steady state