Phần 1 Điền từ 10 câu 3 điểm( 0.

3 điểm 1 câu)

Thuật ngữ định nghĩa vd Cái gì thì bằng = nominal gdp – tax ( đáp án
real interest date)

Mối quan hệ VD Price tăng thì money demand tang

Phần 2 4 câu mỗi câu 1 điểm chỉ lý thuyết

Câu 1 Problem Trình bày 1 lý thuyết 1 nội dung gì đó cơ bản trình bày
eficency wage theory giải thích cách tính GDP, hạn chế thước đo CPI (
Nội dung thuần lý thuyết )
Phần 3 Tính toán các số liệu 2 câu mỗi câu 2 điểm

Câu, Tính toán tỉ lệ lạm phát, GDP giống midterm, ASAD, tính toán
cung tiền, ngân hang trung ưng muốn tăng cung tiền thì tăng giảm
như nào ( exchange rate tỉ lệ tăng trưởng chuyển đổi đô la), số nhân
tiền, môi trường thị trường ngoại hối.

Lưu ý

GROSS DOMESTIC PRODUCTS

- Definition: final goods and services: domestically produced im current

year
- Three approaches to measure GDP :
 + Value added approach: Value added by each firm = Output- Input
purchased from other firms, GDP= Tổng ΣValue added of all firms

+ Income approach: GDP = Wage/salary + rental income + interest

income + profit
+ Expenditure approach: GDP= Consumption of households © +
Investment of firms (I) + Government purchases (G) + Foreigners (x) –
Imports (Im)
- Nominal GDP VS Real GDP
+ Nominal GDP 2025 = Σ( Price of goods in 2025 * Quantity of goods
produced in 2025 )
+ Real GDP 2025 = Σ( Price in goods in base year * Quantity of goods
produced in 2025)
+ Economic growth rate in 2025 = ( Real GDP 2025- Real GDP 2024)/
(Real GDP 2024*)100%
+ GDP deflator in 2025 = Nominal GDP in 2025/ Real GDP IN 2025*100
=> This is a price index
+ Growth rate of overall price level in 2025 = (GDP Deflator in 2025- GDP
deflator in 2024)/ GDP deflator in 2024 *100%

C2 Measuring the cost of living

- Definition of inflation rate: increase in overall price level

- Steps to calculate inflation rate
 Survey to identify the basket off goods and services that a typical
consumer purchases (Q)
 Survey to identify prices of goods and services in that basket at each
point of time ( Pi0, Pi1, Pit,…)
 + Caculate the cost of this basket Q at each point of time ( Σ Pi0* Qi), ( Σ
Pi1* Qi), ( Σ Pit* Qi), ….

+ Choose the base year to calculate the Consumer Price Index. If we

choose year 0 as the base year => CPI1 = ( Σ Pit* Qi)/ ( Σ Pi0* Qi) * 100
with year 0 as base year
Inflation rate πt = ( CPIt- CPIi(t-1))/ CPI(t-1) * 100
- Three reason why inflation rate measured by CPI overstates the true
inflation rate
+ Substitution bias: when price of apple rises => consumers will buy
more oranges as subtitutes to save money => cost of living increases not
as quickly as CPI predicts
+ Quality of goods improve over time
+ Introduction of new goods, => expanding our choices => our wellbeing
increases

Differences between CPI and GDP deflator

- Basket used to compute GDP deflator: domestically produced ( including not
only consumption goods but also capital goods and weapons,…)

- Basket used to compute CPI : Consumption goods ( including not only

domestic but also imported goods)

Application of CPI and inflation rate:

- To adjust nominal economic variables such as nominal wage, nominal

interest rate
- Real interest rate = Nominal interest rate- inflation rate
- Real wage = Nominal wage/ CPI
What determines our benefis is real economic variables, not nominal variables

What are written down in the contract ( labor contract or loan contract) are
nominal variables

C3 Unemployment

- Definition: An adult can belong to

(I) Employed
(II) Unemployment ( wants to work, search for a job, but does not
have a job yet)
(III) Not in labor force ( do not search for a job during last 4 weeks)

+ Labor force = Emplyed + Unemployed

+ Labor force participation rate = Size of labor force / Size of adult

population * 100

+ Unemployment rate = Size of unemployment/ Size of labor force * 100

+ Employment to adult population ratio = Size of employment/ Size of adult

population

Types of unemployment:

- Cyclical unemployment: short-term phenomenon due to economic

fluctuation in short run
- Natural unemployment: long-term phenomenon, existing evem in the
normal conditions of the economy
+ Frictional unemployment: times it take a person to search for a suitable
job, some firms can close while others are newly established
 + Structural unemployment: insufficient jobs for labors due to above-
equilibrium wage. Higher wage => Demand for labor reduces =>
Unemployment
 Minium wage law
 Union
 Efficiency wage theory ( firms are willing to pay for an above
equilibrium wage because of some mental benefits such as health
improvements, attracting high quality labor, improving worker
attitudes and efforts, reducing worker”s job-quitting rate)

+ Some poilicies to unemployment

 Unemployment insurance: we are unemployed longer

 Subsidy to vocational school, government-run agencies to provide job
information

C4 PRODUCTION AND GROWTH

Productivity = Work/ Time => higher productivity => higher standard of living

Productivity depands on

(I) Physical capital per worker

(II) Human capital
(III) Technological knowledge
(IV) Natural resources

Policies to promote productivity

- Encouraging saving and investment

- Attracting foreign investment
 - Promoting free trade

C5 Financial system, saving and investment

Financial markets ( Direct transaction) vs Financial intermediaries ( indirect

transaction)

Financial markets consists of two types: stock market and bond market =>
Distinguish between stock and bond ( risk and return comparison)
Higher risk => Higher expected return

Higher expected return => Higher risk

When interest rate ries, price of financial instruments ( bonds) will reduce
( formula to calculate price of bonds: Price= sum of discounted cash flows )

Financial intermediaries: commercial banks ( two main functions: receiving

deposits and make loans); mutual funds ( one way to diversify investment
portfolio with a small amount of money)

National saving = GDP – C-G- I

National saving= private saving ( GDP – TAX-C) + PUBLIC SAVING ( TAX-G)

Three policies to encourage saving and investment

- Lower tax rate on incomes form saving ( interest income, capital gains)
=> raise supply of funds and lower interest rate
- Reduce government spending and budget deficit => Public saving rises =>
National saving rises => Supply of fund rises and interest rate lower
- Lower tax rate on firms when they undertake new investment =>
encouraging firms to invest more => Demand for fund raises and raise
interest rate

C6 Monetary system
 - Money supply consist of two items: cash on public hand + demand
deposit ( balance in transaction account) => we can use these to buy
goods and services
- How money is created? Central bank uses money to the public
( moneytary base) => public should deposit in the commercial banks in
forms of demand deposit) => commercial banks use the amount of
money they receive to make loans back the economuy
- Money supply formula in general form: Money supply = Monetary base *
Money multiplier
Money multiplier = ( Cash to demand deposit ratio + 1)/ ( Cash to
demand deposit ratio + reserve ratio )
- Three tools to raise money supply of Central bank
+ Open market Operation: Central Bank buys government bond=>
Central Bank pays back money to public => Monetary base rises =>
Money supply rises
+ Central Bank lower discount rate => Commercial banks borrow more
form Central Bank => Monetary base rises => Money supply rises
+ Central Bank lower required reserve ratio => Commercial banks reserve
less and lend out more => Money multiplier rises => money supply rises

C7 AS-AD

- AD => Demand for domestic goods and services => AD = C + I + G + X –

IM
- Higher prices => AD reduces ( wealth effect and interest rate effect)
- AD can declines when
(I) Public feel pessimistic about the future
(II) Lowe income
 (III) Stock market crash => Less wealthier
(IV) Higher interest rates
(V) Higher income tax
(VI) Lower government spending
(VII) Foreign economies fall into recession => we export less
(VIII) Domestic currency appreciates => Our export become more
expensive
(IX) Our government reduces tariff on imported goods

AS

- Long run AS curve is vertical at the natural output

- Short run AS curve slopes upward: higher price will encourage firms to
produce more in short-run ( sticky- wage theory )
- Short run AS reduces when: input costs such as oil, steel, nominal wage,
… rises or firms and lanbors have higher expected price level or bad
crops => Short run AS curve shifts upward
- Macroeconomic equilibrium
+ Long run equilibrium : AD curve intersects long run AS curve
+ Short run equilibrium: AD curve intersects short run AS curve
- Two causes of economic recession
-AD declines => AD curve shifts leftward => in short run: output reduces
and overall price level reduces => unemployment rises. In long run:
output still stays at the natural level, overall price level reduces
- AS in short run declines: short-run AS curve shifts upward/leftward =>
output reduces and overall price level rises => unemployment rises. In
long run: output and price level unchange (stay at the initial
equilibrium)!
C8 MONEYTARY AND FISCAL POLICIES

When the economy is in recession = government

should use expansionary policies: raise money supply to lower interest rates,
raise government spending and subsidy, reduce income tax →> AD rises and AD
curve shifts rightward => output rises and price level rises.

When the economy experiences high inflation => govemment should use
contractionsary policies: reducing money supply to raise interest rates, cut
government spending, raise income tax to lower consumption => AD reduces
and AD curve shifts leftward => price level reduces and output reduces.

For fiscal policy: understand two effects:

(I) expenditure multiplier effect:

Higher government spending => higher consumption

ΔY = ΔG*(1/(1-MPC))

Or lower income tax = higher consumption => higher income => higher
consumption:

ΔY = ΔTax*(-MPC/(1-MPC))
(II) Crowding-out effect: higher government spending or lower income
tax that makes consumption rise will raise interest rates and lower
investment spending.
- Limitations of these policies: Lag effect (perception lag => action lag =>
effective lag)
- To mitigate this limitation or lag effect => government can establish
automatic stabilizers such as unemployment benefit system or
 progressive income tax system (this mechanism can reduce or eliminate
perception lag and action lag)

C9 Macroeconomics for an Open Economy

- Structure of Balance of Payments

(I) Current account : Export (+); Imports (-); Income from investment
Abroad(+); Income paid to foreign investors(-); Foreign aid we
receive(+); We provide aid to other nations(-)
(II) Captial account : Foreign investment into our country (+); We invest
abroad (-)
(III) Official Settlement Account: If current acc + capital acc < 0 => Central
Bank will sell foreign currency to the market ( use its foreign reserve
or borrows form International Financial Institutions like IMF). If CA +
KA > 0 => Central Bank buys this excessive amount of foreign currency
=> It accumulates foreign reserves or pays back debt to IMF)

Three ways to enhance competitiveness of domestic products

(I) Raises tariff on imported goods

(II) Controling low domestic inflation rate
(III) Let domestic currency depreciates ( mất giá trị )

How exchange rate is determined:

 Purchasing power party theory:

Depriciation rat of domestic currency= Domestic inflation rate – Foreign

inflation rate

 Supply-Demand Approach
• Supply of USD in Vietnam comes form (+) items such as exports, inward
foreign investment...

• Demand for USD in VN comes from (-) items such as imports, outward foreign
investment

 When supply of USD rises => supply curve of foreign currency shifts
rightward => exchange rate reduces, or VND appreciates
 When demand for USD rises => Demand curve of USD shift rightward =>
exchange rate rises or VND depreciates
- Two mechanisms of exchange rate
 Flexible exchange rate mechanism: Central Bank does not
intervene. Exchange rate is only determined by the market
 Fixed exchange rate mechanism: Central Bank fixed a level for
exchange rate
 When foreign exchange market is in shortage of USD at this ex rate
=> Cetral Bank would sell USD to the market to balance it.
 When foreign exchange market is in surplus of USD at this ex rate
=> Central Bank buys USD from the market to balance it