The visual guide to
AP® Macroeconomics
6 units, 95 topics. Each topic is explained in writing, drawn as a lesson you can watch, and checked with practice questions.
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Each unit is as wide as its share of the exam's multiple-choice section.Filled: topics you've opened.
Unit 1Basic Economic Concepts
- Scarcity and the Economic Problem
- The Production Possibilities Curve
- Opportunity Cost and the Shape of the PPC
- Efficiency, Unemployment, and Growth on the PPC
- Absolute and Comparative Advantage
- Terms of Trade and the Gains from Trade
- Demand and the Law of Demand
- What Shifts the Demand Curve
- Supply and the Law of Supply
- What Shifts the Supply Curve
- Market Equilibrium
- Shortages, Surpluses, and Disequilibrium
- Changes in Equilibrium and Double Shifts
Unit 2Economic Indicators and the Business Cycle
- The Circular Flow Model
- What Counts in GDP
- The Expenditure Approach to GDP
- The Income Approach and Value Added
- The Limitations of GDP
- The Labor Force and the Unemployment Rate
- Types of Unemployment
- The Natural Rate and Full Employment
- Discouraged Workers and Underemployment
- Building a Price Index from a Market Basket
- Calculating the Inflation Rate
- Why the CPI Overstates Inflation
- The Costs of Inflation and Who It Hits
- Real Versus Nominal Wages
- Real GDP, Nominal GDP, and the Deflator
- Base Years and Chained Real GDP
- Phases of the Business Cycle
- Output Gaps and Potential Output
Unit 3National Income and Price Determination
- What Aggregate Demand Is
- Why the AD Curve Slopes Down
- What Shifts Aggregate Demand
- Marginal Propensity to Consume and Save
- The Spending Multiplier
- The Tax Multiplier
- Short-Run Aggregate Supply
- What Shifts Short-Run Aggregate Supply
- Long-Run Aggregate Supply
- Equilibrium in the AD-AS Model
- Recessionary and Inflationary Gaps
- Demand Shocks in the Short Run
- Supply Shocks and Stagflation
- Demand-Pull Versus Cost-Push Inflation
- Long-Run Self-Adjustment
- The Tools of Fiscal Policy
- Sizing a Fiscal Policy Action
- Lags in Discretionary Fiscal Policy
- Automatic Stabilizers
Unit 4Financial Sector
- Financial Assets and Bond Prices
- Nominal Versus Real Interest Rates
- Expected Inflation and the Fisher Effect
- What Money Is and What It Does
- Measuring the Money Supply
- Fractional Reserve Banking and the Balance Sheet
- The Money Multiplier
- Why the Multiplier Overstates Expansion
- The Money Market
- Shifts in Money Demand and Money Supply
- The Tools of Monetary Policy
- Ample Reserves and Administered Rates
- Monetary Policy in the AD-AS Model
- Lags and Limits of Monetary Policy
- The Loanable Funds Market
- What Shifts Loanable Funds
- National Saving, Public and Private
Unit 5Long-Run Consequences of Stabilization Policies
- Fiscal and Monetary Policy Together
- Tracing a Policy Action Across the Graphs
- The Short-Run Phillips Curve
- The Long-Run Phillips Curve
- What Shifts the Phillips Curve
- Translating AD-AS into the Phillips Curve
- The Quantity Theory of Money
- Money Growth and Long-Run Inflation
- Deficits, Surpluses, and the National Debt
- Interest Payments and the Debt Burden
- Crowding Out in the Loanable Funds Market
- Crowding Out and Long-Run Growth
- Measuring Economic Growth
- Productivity and the Sources of Growth
- Public Policy and Economic Growth
- Supply-Side Policy in the Short and Long Run
Unit 6Open Economy - International Trade and Finance
- The Current Account
- The Capital and Financial Account
- Why the Balance of Payments Balances
- Exchange Rates, Appreciation, and Depreciation
- The Foreign Exchange Market
- Equilibrium and Disequilibrium in the Currency Market
- Policy Changes and the Currency Market
- Income, Inflation, and Tastes in the Currency Market
- Exchange Rates and Net Exports
- From Net Exports Back to Aggregate Demand
- Real Interest Rates and International Capital Flows
- Linking Loanable Funds, Currency, and Net Exports