ECN Final Exam Study Guide 2026 | Economics Review, Practice Questions & Test
Prep
Production Function - ANS ✔✔Y = AF ( L,K,H,N)
Productivity Function - ANS ✔✔Y/L = AF ( K/L, H/L, N/L)
Private Savings - ANS ✔✔Y-T-C
Public Savings - ANS ✔✔T-G
National Savings - ANS ✔✔PRIVATE + PUBLIC
Unemployment Equation - ANS ✔✔(# unemployed / # in labor) x 100
Real interest rate formula - ANS ✔✔Nominal rate - inflation
Labor force participation rate - ANS ✔✔(number in labor force / number in adult population) x
100
Roughly how large is GDP? - ANS ✔✔21 trillion
What is the current unemployment rate? is it high or low compared to "good"? - ANS ✔✔6.0
high compared to good
GROSS DOMESTIC PRODUCT AND UNEMPLOYMENT - ANS ✔✔GROSS DOMESTIC PRODUCT AND
UNEMPLOYMENT
, What does GDP measure? - ANS ✔✔Total Income and Total Expenditure
Know the long wordy definition of GDP - ANS ✔✔the market value of all final goods and
services produced within a country in a given period of time
What is included in GDP and how does it affect each component? - ANS ✔✔GDP= Consumption,
Investment, Government purchases, and Net Exports (Y = C+I+G+NX)
What are some weaknesses of the GDP statistic? - ANS ✔✔does not include pollution, leisure
time, a lawn you mowed yourself, and in home childcare.
What is the largest component of GDP? - ANS ✔✔consumption
What's the difference between Nominal and Real GDP? - ANS ✔✔Real GDP= value of goods and
services at constant price
Nominal GDP= value of goods and services at current prices.
Which version of GDP should we use to examine output across time? - ANS ✔✔Real GDP
Who counts where for the unemployment rate categories? - ANS ✔✔Unemployment is those
who don't have a job but are currently looking within the last 4 weeks
What happens to the u-rate if everyone looking for work gives up and quits looking? - ANS ✔✔It
goes down but not because they found a job but because they are discouraged workers and not
in the labor force
Prep
Production Function - ANS ✔✔Y = AF ( L,K,H,N)
Productivity Function - ANS ✔✔Y/L = AF ( K/L, H/L, N/L)
Private Savings - ANS ✔✔Y-T-C
Public Savings - ANS ✔✔T-G
National Savings - ANS ✔✔PRIVATE + PUBLIC
Unemployment Equation - ANS ✔✔(# unemployed / # in labor) x 100
Real interest rate formula - ANS ✔✔Nominal rate - inflation
Labor force participation rate - ANS ✔✔(number in labor force / number in adult population) x
100
Roughly how large is GDP? - ANS ✔✔21 trillion
What is the current unemployment rate? is it high or low compared to "good"? - ANS ✔✔6.0
high compared to good
GROSS DOMESTIC PRODUCT AND UNEMPLOYMENT - ANS ✔✔GROSS DOMESTIC PRODUCT AND
UNEMPLOYMENT
, What does GDP measure? - ANS ✔✔Total Income and Total Expenditure
Know the long wordy definition of GDP - ANS ✔✔the market value of all final goods and
services produced within a country in a given period of time
What is included in GDP and how does it affect each component? - ANS ✔✔GDP= Consumption,
Investment, Government purchases, and Net Exports (Y = C+I+G+NX)
What are some weaknesses of the GDP statistic? - ANS ✔✔does not include pollution, leisure
time, a lawn you mowed yourself, and in home childcare.
What is the largest component of GDP? - ANS ✔✔consumption
What's the difference between Nominal and Real GDP? - ANS ✔✔Real GDP= value of goods and
services at constant price
Nominal GDP= value of goods and services at current prices.
Which version of GDP should we use to examine output across time? - ANS ✔✔Real GDP
Who counts where for the unemployment rate categories? - ANS ✔✔Unemployment is those
who don't have a job but are currently looking within the last 4 weeks
What happens to the u-rate if everyone looking for work gives up and quits looking? - ANS ✔✔It
goes down but not because they found a job but because they are discouraged workers and not
in the labor force
