ECN 211 COMPREHENSIVE 2026 EXAM QUESTIONS AND
SOLUTIONS GRADED A+
✔✔Cyclical unemployment is closely associated with - ✔✔short-run ups and downs of
the economy
✔✔Calculate GDP - ✔✔GDP=C+I+G+(X-Im)
✔✔Real vs. Nominal GDP - ✔✔real values are adjusted for inflation, while nominal
values are not. As a result, nominal GDP will often appear higher than real GDP
✔✔Intermediate vs. Final Goods - ✔✔intermediate goods-goods used in the production
of final goods
final goods- final goods are the goods which are ready for sale in the market
✔✔Expenditure Approach - ✔✔The national income accounting method that measures
GDP by adding all the spending for final goods during a period of time
-One way to measures GDP
-GDP = C + I + G + (X - M)
✔✔Problems with GDP - ✔✔-Nonmarket Transactions
-Distribution, Kind, and Quality of Products
-Neglect of Leisure Time
-The Underground Economy
-Economic Bads
✔✔Unemployement - ✔✔
✔✔Actual vs. Potential GDP - ✔✔
✔✔structural unemployment - ✔✔the economy has jobs and workers for those jobs, but
the workers skills are outdated; occurs because a healthy, growing economy is always
going through technological transformations
✔✔frictional unemployment - ✔✔people are looking for jobs and there are appropriate
jobs out there for them, they just have not found the jobs yet; exists because the job
search process takes time
✔✔Cyclical Unemployment - ✔✔When individuals lose jobs due to a fall in aggregate
demand, often during an economic recession.
✔✔Seasonal Unemployment - ✔✔When individuals are unemployed due to a change in
season, e.g. Santa Claus after christmas.
SOLUTIONS GRADED A+
✔✔Cyclical unemployment is closely associated with - ✔✔short-run ups and downs of
the economy
✔✔Calculate GDP - ✔✔GDP=C+I+G+(X-Im)
✔✔Real vs. Nominal GDP - ✔✔real values are adjusted for inflation, while nominal
values are not. As a result, nominal GDP will often appear higher than real GDP
✔✔Intermediate vs. Final Goods - ✔✔intermediate goods-goods used in the production
of final goods
final goods- final goods are the goods which are ready for sale in the market
✔✔Expenditure Approach - ✔✔The national income accounting method that measures
GDP by adding all the spending for final goods during a period of time
-One way to measures GDP
-GDP = C + I + G + (X - M)
✔✔Problems with GDP - ✔✔-Nonmarket Transactions
-Distribution, Kind, and Quality of Products
-Neglect of Leisure Time
-The Underground Economy
-Economic Bads
✔✔Unemployement - ✔✔
✔✔Actual vs. Potential GDP - ✔✔
✔✔structural unemployment - ✔✔the economy has jobs and workers for those jobs, but
the workers skills are outdated; occurs because a healthy, growing economy is always
going through technological transformations
✔✔frictional unemployment - ✔✔people are looking for jobs and there are appropriate
jobs out there for them, they just have not found the jobs yet; exists because the job
search process takes time
✔✔Cyclical Unemployment - ✔✔When individuals lose jobs due to a fall in aggregate
demand, often during an economic recession.
✔✔Seasonal Unemployment - ✔✔When individuals are unemployed due to a change in
season, e.g. Santa Claus after christmas.
