Intermediate Macroeconomics Exam 1
Exam Question & Answers ( Latest 2025 )
Supply and Demand - CORRECT ANSWERS ✔✔Know the basics of
shifting supply and demand, and their subsequent effects on the
economy and equilibrium.
Endogenous/Exogenous Variables - CORRECT ANSWERS
✔✔Endogenous - Variables found within the curve that will move
along the curve.
Exogenous - Variables that have to be taken as given from outside the
curve, and will shift the entire curve.
For each model, we need to know: - CORRECT ANSWERS
✔✔Assumptions, the exo/endogenous variables, and what the model
addresses/exemplifies.
Flexible vs. Sticky Prices - CORRECT ANSWERS ✔✔In the short run,
many prices are sticky; therefore, demand may not equal supply,
creating unemployment.
When prices are flexible, markets will clear and ultimately behave
differently.
3 Most Important Statistics of Macroeconomics: - CORRECT ANSWERS
✔✔GDP, CPI, and the unemployment rate.
, Intermediate Macroeconomics Exam 1
Exam Question & Answers ( Latest 2025 )
GDP - CORRECT ANSWERS ✔✔Total expenditure on domestic final
goods/services, or total income earned by domestic factors of
production.
*Expenditure = Income because every dollar spent is a dollar earned.
Value Added - CORRECT ANSWERS ✔✔Value of output - value of
intermediate goods = value added
(The value of final goods already includes the value of intermediate
goods)
Consumption (C) - CORRECT ANSWERS ✔✔The value of all
goods/services bought
Investment (I) - CORRECT ANSWERS ✔✔Spending on capital,
physical assets, inventory
Government Spending (G) - CORRECT ANSWERS ✔✔All government
spending on goods/services. (Excludes transfer payments)
Net Exports (NX) - CORRECT ANSWERS ✔✔Exports - imports, net
spending
Exam Question & Answers ( Latest 2025 )
Supply and Demand - CORRECT ANSWERS ✔✔Know the basics of
shifting supply and demand, and their subsequent effects on the
economy and equilibrium.
Endogenous/Exogenous Variables - CORRECT ANSWERS
✔✔Endogenous - Variables found within the curve that will move
along the curve.
Exogenous - Variables that have to be taken as given from outside the
curve, and will shift the entire curve.
For each model, we need to know: - CORRECT ANSWERS
✔✔Assumptions, the exo/endogenous variables, and what the model
addresses/exemplifies.
Flexible vs. Sticky Prices - CORRECT ANSWERS ✔✔In the short run,
many prices are sticky; therefore, demand may not equal supply,
creating unemployment.
When prices are flexible, markets will clear and ultimately behave
differently.
3 Most Important Statistics of Macroeconomics: - CORRECT ANSWERS
✔✔GDP, CPI, and the unemployment rate.
, Intermediate Macroeconomics Exam 1
Exam Question & Answers ( Latest 2025 )
GDP - CORRECT ANSWERS ✔✔Total expenditure on domestic final
goods/services, or total income earned by domestic factors of
production.
*Expenditure = Income because every dollar spent is a dollar earned.
Value Added - CORRECT ANSWERS ✔✔Value of output - value of
intermediate goods = value added
(The value of final goods already includes the value of intermediate
goods)
Consumption (C) - CORRECT ANSWERS ✔✔The value of all
goods/services bought
Investment (I) - CORRECT ANSWERS ✔✔Spending on capital,
physical assets, inventory
Government Spending (G) - CORRECT ANSWERS ✔✔All government
spending on goods/services. (Excludes transfer payments)
Net Exports (NX) - CORRECT ANSWERS ✔✔Exports - imports, net
spending
