AP Macroeconomics

Comparative Advantage and Gains from Trade

Demand

Market Equilibrium, Disequilibriium, and Changes in Equilibrium

Opportunity Cost and the Production Possibilities Curve

Scarcity

Supply

Business Cycles

Costs of Inflation

Limitations of GDP

Price Indices and Inflation

Real v. Nominal GDP

The Circular Flow and GDP

Unemployment

Banking and the Expansion of Money Supply

Definition, Measurement, and Functions of Money

Financial Assets

Monetary Policy

Nominal v. Real Interest Rates

The Loanable Funds Market

The Money Market

Crowding Out

Economic Growth

Fiscal and Monetary Policy Actions in the Short Run

Government Deficits and the National Debt

Monetary Growth and Inflation

Public Policy and Economic Growth

The Phillips Curve

Aggregate Demand

Automatic Stabilizers

Changes in the AD-AS Model in the Short Run

Equilibrium in the Aggregate Demand-Aggregate Supply (AD-AS) Model

Fiscal Policy

Long-Run Aggregate Supply (LRAS)

Long-Run Self-Adjustment

Multipliers

Short-Run Aggregate Supply (SRAS)

Balance of Payments Accounts

Changes in the Foreign Exchange Market and Net Exports

Effect of Changes in Policies and Economic Conditions on the Foreign Exchange Market

Exchange Rates

Real Interest Rates and International Capital Flows

The Foreign Exchange Market