New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Macro Economics Study Guide

by: Jeanine McDonald

Macro Economics Study Guide ECON 2105 080

Marketplace > Georgia State University > ECON 2105 080 > Macro Economics Study Guide
Jeanine McDonald

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

A full review of major topics and equations reviewed in class.
Elena Andreyeva
Study Guide
Macro Economics
50 ?





Popular in Department

This 5 page Study Guide was uploaded by Jeanine McDonald on Thursday February 11, 2016. The Study Guide belongs to ECON 2105 080 at Georgia State University taught by Elena Andreyeva in Spring 2016. Since its upload, it has received 29 views.


Reviews for Macro Economics Study Guide


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 02/11/16
Macro Economics Study Guide Midterm 1 GDP: Gross Domestic Production The market value of all final goods and services produced in a country during a given time. Market value: legal and documented Final goods: intermediate and resold goods are excluded. Produced in a country: must be produced in the country. During a given time: Products should be final and new. Market Value = quantity x price GDP = C(onsumption) + I(nvestment) + G(ov’t Purchases) + NX(Net Exports) Net Exports = exports – imports Trade deficets: imports > exports, then NX < 0 Consumption:  final purchase of goods and services in households  durable goods  goods consumed over long period of time  cars, appliances  subject to cyclical fluctuation - nondurable goods: consumed over shot timespan; groceries etc - does not include: used goods & new housing Investment:  spending on tools, factories, and equipment used to produce future output by businesses  does NOT include investing in stocks and bonds  does not include spending on intermediate goods Gov’t Purchases:  gov’t employee salaries  gov’t buildings and equipment produced  doesn’t include transfer payments, example: welfare or social security (will be used in consumption) Real GDP: total value of final goods and services produced in economy during year using prices from a base year (assume prices are constant) Nominal GDP: calculated prices from current year Price Level: an index to measure prices of goods and services in an economy GDP deflator: a measure of the price level that includes prices of final goods and services in GDP. Deflates out inflation from nominal GDP to find real GDP. Real GDPt = (nominal GDPt / price level t) x 100 Nominal Growth Rate= ((GDP year2 – GDP year1) / GDP year1) x 100 REAL GDP per Capita = Real GDP / population - a measure of an economy’s avg aggregate output per person 4 Characteristics of Business Cycle: 1. irregular 2. Different periods of time 3. Short term 4. emporary 3 Types of Unemployment: 1.Structural 2. Frictional 3. Cyclical Structural employment: caused by changes in industrial makeup of economy Frictional Unemployment: caused by time delays in matching available jobs and worker Cyclical Unemployment: caused by economic downturns Labor Force: people who are employed or actively seeking work Unemployment rate = U = (number unemployed / labor force) x 100 Discouraged workers: job seekers who get discouraged, stop looking for work Underemployed workers: part time workers who want full time jobs, workers who are overqualified for their job Inflation: continuing rise in general price Consumer Price Index: measure of price level based on consumption patterns of typical consumer Price index = (basket price / basket price in base year) x 100 Inflation rate = ((year2 index – year1 index)/year1) x100 Shoe Leather Costs: as prices increase, its more expensive to hold money Money Illusion: people interpreting nominal wages or price changes as real changes Menu costs: the price of changing prices


Buy Material

Are you sure you want to buy this material for

50 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Amaris Trozzo George Washington University

"I made $350 in just two days after posting my first study guide."

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.