The exam will include material from:
Quiz 2, ch.7, ch. 8 (pp. 216-220, 244-249) and ch. 9 (pp.252-270).
 

You should know the following:
-Computing the steady state values
-What the golden rule is and how to compute the golden rule capital stock.
-How the time path of consumption is affected when the savings rate changes (and how the time path depends on whether the economy is initially above or below the golden rule point).
-Steady state growth rates.
-The role of efficiency.

-Growth accounting and solow residuals (total factor productivity).

-Aggregate Supply in long-run and short-run.  Aggregate Demand changes and effects on output, prices and unemployment in long-run and short-run.
-How the economy self-corrects itself (when actual GDP differs from the full employment GDP).