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Instructions
Questions 1-10 are about macro concepts in the closed-economy conte
Instructions
Questions 1-10 are about macro concepts in the closed-economy context (“1.1 National Income Accounting,” and “1.2 Putting the Categories Together”)
Questions 11 and 12 are about basic balances in the open-economy macro framework. Here you want to draw on “2.1 Basic Categories in an Open Economy” and “2.2 Assembling the Picture.”
Questions 13 and 14 are about how to interpret these basic balances. Here you are basically applying 2.2. These questions can be worked out by looking at the flows diagram developed in 2.2.
Questions 15-24 are about items in the more detailed Balance of Payments accounts presented in “Balance of Payments readings and videos.”
You might want to keep this guide handy so you are sure about which context you are in, because some terms like income and investment are used differently in different contexts. I try to write individual questions so their context is clear, but this might save you some worry. Like other exams in this course this is open-book, but you can’t confer with other humans about it.
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