Exam Review

I know that there are more than a few of you will not be in class on Thursday. Here's the review for Friday's Exam.


Unit 3 Exam Review Sheet

If you master the following topics, you should have no trouble with Friday’s exam.

• Know what two subaccounts compose the Balance of Payments.

• Know the difference between the two subaccounts and examples that fall into each.

• Know what causes a currency to appreciate and to depreciate

• Know the factors that impact the CPI and how inflation is measured and how it is used to compare economic data from year to year.

• Be able to identify the different components of the business cycle.

• Know how to spot inflation on a graph and to be able to explain the characteristics of an economy during inflation.

• Know who counts in the labor force and the different types of unemployment.

• Know the different phases of the business cycle and the characteristics of each phase.

• Know the steps to go through to exchange one type of currency for another.

• What are the factors that shift the FOREX market and the factors that impact the supply and demand of currencies in the FOREX market-PRACTICE THE SCENARIOS FROM YOUR PACKET