2025 Final Exam

The final exam is Sunday May 4, at 7:30 p.m.– 10 p.m., in our regular classroom.

2025

I found one error on the final after it was already copied: Questions 48 and 49 are identical as printed. The intent—and how I am hereby editing it—is that 48 is about the long run and 49 is about the short run:

Translation of Final Exam Raw Score to a Letter Grade:

41-44 A (44 was the high score)

36-40 A-

33-35 B+

30-32 B

30 B-

29 B-/C+

27-28 C+

24-26 C

18-23 C-

12-17 D+ (12 was the low score)

Slides (these are also on Canvas under “Files”, which is where you need to go for the ones that I felt have copyright issues)

Supplementary Readings for the Final Exam

YouTube Video to Watch for the Final Exam

Optional Video

I won’t assign this video on the final, but I highly recommend it. It can help you:

Resources for Learning More about How to Work with the Internation Finance Diagrams (SR & LR).

You need to do the practice exam before Wednesday. Before doing that, you should (a) do this Solow Growth Model exercise (look at the rest of the Economic Growth Slides first):

Exercise: Calculating and Applying Elasticities of k* and y* (the Steady-State Capital to Effective Labor Ratio and Output to Effective Labor Ratio) to Exogenous Changes

and (b), study up on working with the international finance diagrams by looking at these posts:

PLUS

Look at the answers for these question in the answer sheets for exams earlier than 2024 (saving the 2024 final exam as a practice exam). (Or if you are willing to spend more time studying, you can treat the 2022 final exam as a pre-practice exam.)

I will ask questions about aggregate demand. In the long run, the only things that could affect aggregate demand would be things that increase the natural level of output: a change in technology or a change in the amount of labor. (Because of the stock-flow distinction, the capital stock can’t change much at all in the long run. Changes in the capital stock are a very-long-run thing.)

In the short run, assume the following:

  • If the initial shock is to consumption—whether directly or because of tax changes—that direction dominates what happens to aggregate demand.

  • If the initial shock is to government purchases, that direction dominates what happens to aggregate demand.

  • As long as the initial shock is NOT to consumption or government purchases, aggregate demand moves in same direction as I + NX.

Practice Exam. Please do the practice exam before Wednesday’s class! But note that the material covered is somewhat different. Try everything, but don’t be alarmed if you don’t know some answers. You’ll learn something from trying to answer the questions and then later seeing the answer sheet.

Below is the final exam answer sheet. Remember that I grade on the curve and not using the usual percentages you are used to!!!!!!!!! If you use the usual percentages you will cause yourself much unnecessary psychological distress! Better to compare your performance to this histogram to see what your percentile rank in the course is. Roughly speaking, the top 1/5 of scores (regardless of how low the percentage) get A’s and the bottom 1/2 get C’s (regardless of how low the percentage). In between get B’s.

I’ll work on the course grades tomorrow.

2022 Final Exam

Exercise: Calculating and Applying Elasticities of k* and y* (the Steady-State Capital to Effective Labor Ratio and Output to Effective Labor Ratio) to Exogenous Changes

Supplementary Readings Directly Tested:

Video Directly Tested:

Slides for the Last 1/3 of the Course:

Additional Practice:

2019 Midterm #2

2019 Final Exam