ECN 211 MIDTERM 2026 COMPREHENSIVE
STUDY GUIDE COMPLETE SOLUTIONS
VERIFIED
◉ Gross Domestic Product Equation. Answer: C + I + G + NX
(C + I + G + (Exports - Imports))
◉ Included in GDP. Answer: Tangible goods: Cars, Appliances, Food
items
Intangible goods: Dentist visit, Salon trip, Tax service
Any final goods produced in country (even if foreign owned)
Goods and Services currently produced
◉ 4 Expenditures of GDP. Answer: Consumption, Investment,
Government Purchases, and Net Exports
◉ Consumption. Answer: Spending by households on
goods/services with the exception of new housing
◉ Investment. Answer: Purchase of capital goods by businesses that
will be used to produce more goods in the future
, ◉ Government Purchases. Answer: Spending on goods/services by
local, state, and federal governments from the private sector. Does
not include transfer payments
◉ Net Exports. Answer: Exports - Imports
◉ Real GDP. Answer: Measures output in regards to inflation
Allows for better comparison of GDP year to year
◉ Real GDP Equation. Answer: Base year prices x Current Output
◉ Nominal GDP. Answer: Measure of output using current prices
Growth can be overstated
◉ Nominal GDP Equation. Answer: Current price x Current output
◉ GDP Deflator. Answer: Measures changes in price for all goods and
services produced
◉ GDP Deflator Equation. Answer: (Nominal GDP/Real GDP) x 100
◉ What is unemployment?. Answer: Someone who is actively
searching for work and cannot find a job
STUDY GUIDE COMPLETE SOLUTIONS
VERIFIED
◉ Gross Domestic Product Equation. Answer: C + I + G + NX
(C + I + G + (Exports - Imports))
◉ Included in GDP. Answer: Tangible goods: Cars, Appliances, Food
items
Intangible goods: Dentist visit, Salon trip, Tax service
Any final goods produced in country (even if foreign owned)
Goods and Services currently produced
◉ 4 Expenditures of GDP. Answer: Consumption, Investment,
Government Purchases, and Net Exports
◉ Consumption. Answer: Spending by households on
goods/services with the exception of new housing
◉ Investment. Answer: Purchase of capital goods by businesses that
will be used to produce more goods in the future
, ◉ Government Purchases. Answer: Spending on goods/services by
local, state, and federal governments from the private sector. Does
not include transfer payments
◉ Net Exports. Answer: Exports - Imports
◉ Real GDP. Answer: Measures output in regards to inflation
Allows for better comparison of GDP year to year
◉ Real GDP Equation. Answer: Base year prices x Current Output
◉ Nominal GDP. Answer: Measure of output using current prices
Growth can be overstated
◉ Nominal GDP Equation. Answer: Current price x Current output
◉ GDP Deflator. Answer: Measures changes in price for all goods and
services produced
◉ GDP Deflator Equation. Answer: (Nominal GDP/Real GDP) x 100
◉ What is unemployment?. Answer: Someone who is actively
searching for work and cannot find a job
