Study Guide for Exam on Thursday February 26

1.  Circular flow model
             - parts and functions
             - what happens between phases?
2.  Business Cycle
             - describe the phases
             - expansion, contraction, peak, trough,
3.  Labor force participation
             - who is counted?
             - who is excluded?
4.  Inflation
             - what is inflation?
             - causes of inflation
5.  GDP - what is it the formula?
             - what is included, what is not included?
             - real GDP vs. nominal GDP
             - what is GDP per capita?
             - what is the base year?
6. Unemployment
             - define unemployment
             - determine % of unemployment
             - 4 types of unemployment
             - what is NRU?
7. Consumer Price Index
             - what is CPI?
             - nominal wage vs. real wage
             - what is the base year?
             - calculate inflation
             - calculate CPI changes
             - calculate GDP changes
           
Use your 5 Steps to a 5 Ap Guide for review for the following topics above.
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