ECO 212 - Macroeconomics
Exam 2 REVIEW

We have not thoroughly completed all the chapters in class that will be covered on the unit 2 exam. It is suggested that you read all of the chapters (be sure to see the exact pages to read on our web page) and concentrate on the following sections:

Chapter 5 - Thoroughly covered in class
Chapter 11 - Thoroughly covered in class
Chapter 8 - Thoroughly covered in class

So here we'll just discuss Ch. 7, Ch. 18, and Ch. 22

Chapter 22 - Growth and the LDCs
I use the term "Less Developed Countries" or "LDCs" for the world's poor countries and "More Developed Countries" or "MDCs" for the world's richer countries. The authors of our textbook use the term "developing countries" or "DVCs" for the poor countries and "Industrially Advanced Countries" or "IACs" for the richer countries.


[Study Guide, pp. 244-5: especially questions: #1, 2, 4, 6, 7, 12, 16, 19]

Measures of Economic Development

Obstacles to Economic Development (pp. 455-462)

The Vicious Circle (pp. 462-3)

Role of Government (pp. 463-5)

Role of Advanced Nations (pp. 465-7)

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Chapter 18 - Economic Growth
[Study Guide, especially pp. 199-201: #1, 4, 5, 6, 7, 15, 24, 25]

Growth Economics (pp. 368-369)

    1. "an increase in real GDP occurring over some time period" includes BOTH of the two definitions we use in class (see above).
    2. "an increase in real GDP per capita occurring over some time period" is an increase in real GDP PER PERSON. GDP per capita is GDP divided by the population.

Ingredients of Growth and Graphical Analysis (pp. 369-371)

The Productivity (Growth) Slowdown (pp. 378-382)

Growth Policies (pp. 383)

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Chapter 7 - Measuring Domestic Output (RDO), National Income, and the Price Level
[Study Guide, especially pp. 72-4: #2, 4, 6-13, 16-18, 23-30]

GDP (pp. 125-7)

Expenditures Approach (p. 128-132)

Income Approach (p132-4)

Other National Accounts (p134-6)

Nominal and Real GDP (pp. 136-141)

The CPI (pp. 141)

We covered this in class when discussing inflation

GDP and Economic Well-Being (pp. 141-42)

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