Topics AP Macroeconomics

What AP says should be covered in Unit 1:

Scarcity

Opportunity Cost

Production Possibilities Curve

Demand,

Supply,

Market Equilibrium

Supply and Demand:  “used to analyze the workings of the free market system”

Absolute Advantage, Comparative Advantage, Mutually Advantageous Trade

Business Cycles

Economic Growth

Graphs students need to draw or identify for multiple choice questions:

Production Frontiers (especially for use in Comparative Advantage questions)

Supply and Demand

Supply and Demand with Ceilings and Floors

Currencies (as examples of Supply and Demand) (US dollars, other currencies: real or made up)

Cycles

What AP says should be covered in Unit II:

Circular Flow, Households, Businesses, Government, International

Gross Domestic Product, Expenditure Approach Components

Unemployment, Types, Measures, Causes, Unemployment Rate, Natural Rate

Inflation Measures, Changes in Dollar Values over Time, Costs of Inflation

Nominal GDP, Real GDP

Consumer Price Index

GDP Deflator

Graphs students need to draw or identify for multiple choice questions:

The basic Circular Flow model

Investment Demand

What AP says should be covered in Unit III:

Aggregate Supply and Aggregate Demand

Equilibrium National Output, Full Employment Output

General Price Level

Effects of Public Policy

AD and AS Curves

AD Factors (C + Ig + G + Xn) 

AS Factors

Short Run AS

Long Run AS

Spending Multiplier (applied to Aggregate Models)

Crowding Out (save for Unit V)

Sticky Price, Sticky Wages

Flexible Price and Flexible Wage

Graphs students need to draw or identify for multiple choice questions:

Aggregate Model

What AP says should be covered in Unit IV:

Money Supply and Factors

Money Demand and Factors

Definition of Money

Measures of Money Supply

Time Value of Money

Stocks and Bonds (Definitions)

Fractional Reserve Banking

The Federal Reserve System

Multiple Deposit Expansion

T-Account Money Creation

Money Multiplier (via Loans)

Monetary Policy

Equilibrium Interest Rates

Interest Rates and Aggregate Demand

Aggregate Demand and Real Output and Price Level

Financial Markets

Loanable Funds Market (Private Savings Market)

Real Interest Rate

Money Market (as different from Loanable Funds)

Tools of Central Bank Policy

Quantity Theory of Money

Graphs students need to draw or identify for multiple choice questions:

Money Market

Loanable Funds (Private Savings Market)

What AP says should be covered in Unit V:

Public Policy and Output, Price Level, Employment in the SR and LR

Fiscal Policy

Monetary Policy

Short Run Shocks

Long Run Equilibrium

Budget Deficits and Crowding Out

The Burden of the National Debt

Phillips Curves:  Short Run and Long Run

Inflation and Unemployment Trade Off

Inflation Expectations

Graphs students need to draw or identify for multiple choice questions:

Crowding Out (Shown in? -- Investment Demand Graph, Money Market Graph, Loanable Funds Graph, Aggregate Model)

Phillips Curves

The Phillips and Aggregate Model Link (Coming to future tests?)

What AP says should be covered in Unit VI:

Long Run Economic Growth

Productivity Measures

Standard of Living

Role of Investment

Physical Capital Accumulation

Research and Development

Graphs students need to draw or identify for multiple choice questions:

(No new graphs)

What AP says should be covered in Unit VII:

Balance of Payments Accounts

Trade Balance

Current Account

Capital (Financial) Account

Foreign Exchange Markets

Equilibrium Exchange Rates

Currency Demand and Supply

Currency Appreciation and Depreciation

Net Exports

Trade Restrictions

Graphs students need to draw or identify for multiple choice questions:

(No new graphs)