AP Macroeconomics

Build a solid foundation in unit 1 of AP Macroeconomics. Our resources go over the important vocabulary, fundamental skills, and basic economic concepts you'll need to master for the exam, such as supply, demand, and market equilibrium. Review and practice with these helpful study guides, so you'll be prepared to conquer the test!

Unit 1 – Basic Economic Concepts

Don't miss out on these useful resources for unit 2 of AP Macroeconomics: Economic Indicators and the Business Cycle! We go over the important vocabulary, skills, and concepts you need to know for the exam. Review and practice GDP, inflation, and unemployment!

Unit 2 – Economic Indicators & the Business Cycle

Take advantage of our useful resources for National Income and Price Determination in AP Macroeconomics. Explore all the important vocabulary, skills, and concepts you need to master. Review aggregate supply and demand, multipliers, and equilibrium and master AP Macro unit 3!

Unit 3 – National Income & Price Determination

Get ready to conquer the financial sector in AP Macroeconomics. We cover the important vocabulary, skills, and concepts you need to master to do well on the exam. Learn all about interest rates, the money market, and monetary policy with our amazing Macro unit 4 guides.

Unit 4 – Financial Sector

Master the long-run effects of stabilization policies in our AP Macro unit 5 guides, and learn all about growth, debt, inflation, and the Philips curve. Review and practice with us, so you'll be prepared to rock the test!

Unit 5 – Long-Run Consequences of Stabilization Policies

Finish out AP Macro: Open Economy—International Trade and Finance. We cover the vocabulary, skills, and concepts you need to master. Our helpful study guides and resources will go over all you need to know about foreign exchange market, rates, and policies to be ready for unit 6!

Unit 6 – Open Economy - International Trade & Finance

Frequently Asked Questions

Learn all about the AP Macroeconomics exam! Learn how to manage the multiple choice questions (MCQs) and how to write great FRQs. Brush up on exam logistics, types of questions, how to draw graphs, helpful tips, sample questions, and practice prompts, With these useful strategies and practice, you'll be prepared to knock the exam out of the park!

Exam Skills

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Study Tools

Unit 1 Overview: Basic Economic concepts 

Microeconomics vs. Macroeconomics

Factors of Production

Organization of Society

Opportunity Costs and Trade-offs

Production Possibilities

Scarcity

Introduction to the Production Possibilities Curve (PPC)

Opportunity Cost and the Production Possibilities Curve (PPC)

Unit 1 - Comparative Advantage and Trade 

Key Terms 🔎

Introduction

Output Problems

Determining Absolute Advantage

Determining Comparative Advantage

Input Problems

 Terms of Trade

Comparative Advantage and Trade

Unit 1 - Demand 

Definition of Demand

Demand vs. Quantity Demanded

Law of Demand

Determinants of Demand

The INSECT Acronym

Demand

Unit 1 - Supply 

Definition of Supply

Quantity Supplied vs. Supply

Law of Supply

Determinants of Supply

Supply

Market Equilibrium

Market Disequilbrium  

Changes in Market Equilibrium

Recap of the topic: 

Market Equilibrium, Disequilibrium, and Changes in Equilibrium

Unit 2 Overview: Economic Indicators and the Business Cycle


Economic Indicators and the Business Cycle

Unit 2 Overview: Economic Indicators and the Business Cycle

Circular Flow

Consumers

Firms

Product Market

Factor Market

Example Flow

GDP (Gross Domestic Product)

Components of GDP 

The Expenditure Approach

The Income Approach

What is Not Included in GDP?

Circular Flow and GDP

Uses of GDP in Economics

Limitations of GDP

1. Population

2. Inequality

3. Environment

4. Shadow Economy

Understanding and Counting Labor

Calculating Unemployment

Calculating the Unemployment Rate

Types of Unemployment

Frictional Unemployment

Structural Unemployment

Cyclical Unemployment

Full Employment

Unemployment

Vocabulary

Defining Inflation

Price Indices and the CPI

Practice Problems

How to Calculate the CPI

Price Indices and Inflation

Costs of Inflation

Who Is Helped By Unanticipated Inflation?

Who is Hurt By Unanticipated Inflation?

Problems With Nominal Variables

Nominal vs. Real GDP

How to Calculate Real and Nominal GDP

Using the GDP Deflator

Real vs Nominal GDP

Measuring Change in the Economy

The Parts of the Business Cycle

Expansion + Peak

Contraction + Trough

The Business Cycle in Real Life

Business Cycles

Aggregate Demand

Shifters of Aggregate Demand

Multipliers

Spending and Tax Multipliers

Short-Run Aggregate Supply (SRAS)

Scenarios

Long-Run Aggregate Supply (LRAS)

Shifters in LRAS

Equilibrium AD-AS Model

Equilibrium Gaps

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

GDP Determinants

Negative Supply Shock

Positive Supply Shock

Changes in the AD-AS Model in the Short Run

Long-Run Adjustment

Shocks

Recessionary Gap

Inflationary Gap

Long-Run Self-Adjustment

Short-Run Effects

Types of Fiscal Policies

Expansionary Fiscal Policy

Contractionary Fiscal Policy

Calculating Fiscal Policies

Fiscal Policy

Income Taxes and Antipoverty Programs

Recessionary Period

Inflationary Period

Disclaimer

Automatic Stabilizers

Intro to Unit 4

The Financial Sector

4.1 Financial Assets

4.2 Nominal vs. Real Interest Rates


4.3 Definition, Measurement, and Functions of Money

4.4 Banking and the Expansion of the Money Market

4.5 The Money Market

4.6 Monetary Policy

4.7 The Loanable Funds Market

Unit 4 Overview: Financial Sector

Key Vocabulary

Stocks

Bonds

Loans

Bank Deposits

Bonds and Interest Rates

Financial Assets

Interest Rates

Chart


Nominal Interest Rates

Real Interest Rates

Predictions

Nominal vs. Real Interest Rates

Functions of Money

Medium of Exchange

Unit of Account

Store of Value

Measurements of the Money Supply

Monetary Base

Definition, Measurement, and Functions of Money

Fractional Reserve Banking

Money Multiplier

Bank Balance Sheets

Practice Free Response Question (FRQ) - 2016 # 2

Banking and the Expansion of the Money Supply

The Demand For Money

The Money Market

Types of Monetary Policy


Tools of Monetary Policy

Effects of Monetary Policy

Recessionary Gap to Full Equilibrium via Expansionary Monetary Policy

Inflationary Gap to Full Equilibrium via Contractionary Monetary Policy

Monetary Policy

Demand of Loanable Funds


Shifters for the Demand Loanable Funds

Supply of Loanable Funds

Determinants for the Supply of Loanable Funds 

Loanable Funds Market

The Loanable Funds Market

Long-Run Consequences of Stabilization Policies

5.1 Fiscal and Monetary Policy

5.2 The Philips Curve

5.3 Money Growth and Inflation

5.4 Deficits and the National Debt

5.5 Crowding Out

5.6 Economic Growth

5.7 Public Policy and Economic Growth

Unit 5 Overview: Long-Run Consequences of Stabilization Policies

Fiscal and Monetary Policies

Fiscal and Monetary Policy Actions in the Short-Run

Phillips Curve

Shifting AD

Shifting SRAS

Long-Run Philips Curve

The Phillips Curve

AP Macroeconomics Cram 

AP Macroeconomics Cram

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AP Macroeconomics Cram

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