1) List the four major components of expenditure that make up GDP, and explain why each is important.
2) Explain the connections among real GDP, nominal GDP, and the price level (remember we studied two ways to calculate price level: GDP Deflator and CPI).
3) Explain why optimization by the consumer should imply that the marginal rate of substitution of leisure for consumption is equal to the market real wage.
4) What will a consumer do, in terms of optimal consumption and leisure, if the real wage falls?
5) In the one period model, list the requirements for a competitive equilibrium, and explain why each is important.
6) In the Solow growth model, suppose that the population growth rate declines. Explain what the steady state effects are, and why.