💶AP Macroeconomics
Key Terms

644 essential vocabulary terms and definitions to know for your AP Macroeconomics exam

💶AP Macroeconomics
Key Terms by Unit

Unit 1 – Basic Economic Concepts

1.1 Scarcity

1.2 Opportunity Cost and the Production Possibilities Curve (PPC)

1.3 Comparative Advantage and Trade

1.4 Demand

1.5 Supply

1.6 Market Equilibrium, Disequilibrium, and Changes in Equilibrium

Unit 2 – Economic Indicators and the Business Cycle

2.1 Circular Flow and GDP

2.2 Limitations of GDP

2.3 Unemployment

2.4 Price Indices and Inflation

2.5 Costs of Inflation

2.6 Real vs Nominal GDP

2.7 Business Cycles

Unit 3 – National Income and Price Determination

3.1 Aggregate Demand

3.2 Spending and Tax Multipliers

3.3 Short-Run Aggregate Supply (SRAS)

3.4 Long-Run Aggregate Supply (LRAS)

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

3.6 Changes in the AD-AS Model in the Short Run

3.7 Long-Run Self-Adjustment

3.8 Fiscal Policy

3.9 Automatic Stabilizers

Unit 4 – 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 Supply

4.5 The Money Market

4.6 Monetary Policy

4.7 The Loanable Funds Market

Unit 5 – Long–Run Consequences of Stabilization Policies

5.1 Fiscal and Monetary Policy Actions in the Short-Run

5.2 The Phillips 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 6 – Open Economy – International Trade and Finance

6.1 Balance of Payments Accounts

6.2 Exchange Rates

6.3 Foreign Exchange Market

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

6.5 Changes in the Foreign Exchange Market and Net Exports

6.6 Multiple Choice Questions

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