The Principles of Macroeconomics examination covers material that is
usually taught in a one-semester undergraduate course in this subject,
including principles of economics that apply to an economy as a whole,
particularly the general price level, output and income, and
interrelations among sectors of the economy. The test places
particular emphasis on the determinants of aggregate demand and
aggregate supply, and on monetary and fiscal policy tools that can be
used to achieve particular policy objectives. Within this context,
you're expected to understand measurement concepts such as gross
domestic product, consumption, investment, unemployment, inflation,
inflationary gap and recessionary gap. You're also expected to
demonstrate knowledge of the institutional structure of the Federal
Reserve Bank and the monetary policy tools it uses to stabilize
economic fluctuations and promote long-term economic growth, as well
as the tools of fiscal policy and their impacts on income, employment,
price level, deficits, and interest rates. Basic understanding of
foreign exchange markets, balance of payments, effects of currency,
and appreciation and depreciation on a country's imports and exports
are also expected.