Exam Topics
1 Basic Economic Concepts (5-10%)
1.1 Scarcity
1.2 Opportunity Cost and the Production Possibilities Curve (PPC)
1.3 Comparative Advantage and Gains from Trade
1.4 Demand
1.5 Supply
1.6 Market Equilibrium, Disequilibrium, and Changes in Equilibrium
2 Economic Indicators and the Business Cycle (12-17%)
2.1 The Circular Flow and GDP
2.2 Limitations of GDP
2.3 Unemployment
2.4 Price Indices and Inflation
2.5 Costs of Inflation
2.6 Real vs Nominal GDP
2.7 Business Cycles
3 National Income and Price Determination (17-27%)
3.1 Aggregate Demand (AD)
3.2 Multipliers
3.3 Short-Run Aggregate Supply (SRAS)
3.4 Long-Run Aggregate Supply (LRAS)
3.5 Equilibrium in the Aggregate Demand– ggregate Supply (AD–AS) Model
3.6 Changes in the AD–AS Model in the Short Run
3.7 Long-Run Self-Adjustment
3.8 Fiscal Policy
3.9 Automatic Stabilizers
4 Financial Sector (18-23%)
4.1 Financial Assets
4.2 Nominal v. Real Interest Rates
4.3 Definition, Measurement, and Functions of Money
4.4 Banking and the Expansion of the Money Supply
4.5 The Money Market
4.6 Monetary Policy
4.7 The Loanable Funds Market
5 Long-Run Consequences of Stabilization Policies (20-30%)
5.1 Fiscal and Monetary Policy Actions in the Short Run
5.2 The Phillips Curve
5.3 Money Growth and Inflation
5.4 Government Deficits and the National Debt
5.5 Crowding Out
5.6 Economic Growth
5.7 Public Policy and Economic Growth
6 Open Economy: International Trade and Finance (10-13%)
6.1 Balance of Payments Accounts
6.2 Exchnge Rates
6.3 The Foreign Exchange Market
6.4 Effect of Changes in Policies and Economic Conditions on the Foreign Exchange Market
6.5 Changes in the Foreign Exchange Market and Net Exports
6.6 Real Interest Rates and International Capital Flows
Exam Format
Section I: Multiple choice, 60 questions, 1 hour 10 minutes, 66% weight
Section II: Free response, 3 questions, 1 hour, 34% weight