Question

Im so scared with my Macroeconomics exam. We are expected to know how to draw graphs, other than that there’s also 60 multiple choice. Any economics expert out there? What are the best ways to study for an economy exam. I dont wanna memorize over thousands of terms over 11 chapters.

The Chapters are:

Chapter 1: Macroeconomics and Life

Chapter 7: Measuring the wealth of nations

Chapter 8: The cost of living

chapter 9: economic growth

chapter 10: unemployment and the demand for labour

chapter 11: aggregate demand and supply

chapter 12: fiscal policy

chapter 13: the basics of finance

chapter 14: money and the monetary system

chapter 15: inflation

chapter 17: open-market macroeconomics.

Answer 1

chapter 1- macro economics deals with study of the economy in the aggregate level. different asspects of the economy such as inflation, price levels, growth of the economy, national income, GDP, employment and foreign trade. changes of polices of the government are related to the concept of macro economics only. so to study the impact of each changes and each variable we will have to know the different concept of macro economics first.

chapter-7- the wealth of nations reltes to the national income of the nation. we will have to know the national income in both gross and net sense and also the flow of national income .

chapter 8- the cost of living relates to the concept of poverty, inequality and distribution of income. different measures of cost of livings are there

chapter 9- growth rate of GDP, GNP, GROSS VALUE ADDED, sectoral share of income etc are important concept to know to get knowledge about growth of economy.

chapter 10- unemployment rate and inflation or price level in the economy are closely related so to know demand and supply of labour and unemplyment rate the concept of wages and profits , investment and savings concept should be known before hand.

chapter 11: aggregate demand and supply, these two are study of the economy in a broad aggregate level. the aggregate demand consists of, consumption and investmet demand, government expenditure, and net export. like wise aggregate supply consists of the total supply of money in the economy. role of government and central bank are important to know here.

chapter 12: fiscal policy and monetary policy are tools of central bank to influence the economy. fiscal policy relates to changes in government exp, taxes and debts of the government so these concepts are important to know.

chapter 13: the basics of finance relates to the money and capital market in the economy.

chapter 14: money and the monetary system are part of central banking system as central bank is the authority of money supply in the economy.

chapter 15: inflation is related to demand and supply of money, output and demand for goods and services in the market.inflation is nothing but the increase in general price level in the economy. it happens when demand is more than supply and the economy is in full employment.

chapter 17: open-market macroeconomics is relted to export and import of the economy. the concept of balance of payment is really important here.