Principles of macroeconomics for ap® courses

OpenStax

@

0.1 About openstax

0.2 About openstax’s resources

0.3 Customization

0.6 About Principles of Macroeconomics for AP ® Courses

0.7 Coverage and scope

0.8 Pedagogical foundation

0.9 Questions for each level of learning

0.10 Updated art

0.11 About our team

0.12 Senior contributing author

0.13 Senior content expert

0.14 Senior contributors

0.16 Ancillaries

1 The use of mathematics in principles of economics

2 Indifference curves

3 Present discounted value

Welcome to economics!

1 What is economics, and why is it important?

2 Microeconomics and macroeconomics

2.1 Microeconomics

2.2 Macroeconomics

2.3 Key concepts and summary

3 How economists use theories and models to understand economic issues

4 How economies can be organized: an overview of economic systems

4.1 Regulations: the rules of the game

4.2 The rise of globalization

4.3 Key concepts and summary

Choice in a world of scarcity

Introduction to choice in a world of scarcity

1 How individuals make choices based on their budget constraint

1.1 The concept of opportunity cost

1.2 Identifying opportunity cost

1.3 Marginal decision-making and diminishing marginal utility

1.5 From a model with two goods to one of many goods

1.6 Key concepts and summary

2 The production possibilities frontier and social choices

2.1 The shape of the ppf and the law of diminishing returns

2.2 Productive efficiency and allocative efficiency

2.3 Why society must choose

2.4 The ppf and comparative advantage

2.5 Key concepts and summary

3 Confronting objections to the economic approach

Demand and supply

Introduction to demand and supply

1 Demand, supply, and equilibrium in markets for goods and services

1.1 Demand for goods and services

1.2 Supply of goods and services

1.3 Equilibrium—where demand and supply intersect

1.4 Key concepts and summary

2 Shifts in demand and supply for goods and services

3 Changes in equilibrium price and quantity: the four-step process

3.1 Good weather for salmon fishing

3.2 Newspapers and the internet

3.3 The interconnections and speed of adjustment in real markets

3.4 A combined example

3.5 Key concepts and summary

4 Price ceilings and price floors

5 Demand, supply and efficiency

5.1 Consumer surplus, producer surplus, social surplus

5.2 Inefficiency of price floors and price ceilings

5.3 Key concepts and summary

Labor and financial markets

Introduction to labor and financial markets

1 Demand and supply at work in labor markets

1.1 Equilibrium in the labor market

1.2 Shifts in labor demand

1.3 Shifts in labor supply

1.4 Technology and wage inequality: the four-step process

1.5 Price floors in the labor market: living wages and minimum wages

1.6 The minimum wage as an example of a price floor

1.7 Concepts and summary

2 Demand and supply in financial markets

3 The market system as an efficient mechanism for information

The macroeconomic perspective

Introduction to the macroeconomic perspective

1 Measuring the size of the economy: gross domestic product

2 Adjusting nominal values to real values

2.1 Converting nominal to real gdp

2.2 Key concepts and summary

3 Tracking real gdp over time

4 Comparing gdp among countries

5 How well gdp measures the well-being of society

5.1 Limitations of gdp as a measure of the standard of living

5.2 Does a rise in gdp overstate or understate the rise in the standard of

5.3 Gdp is rough, but useful

5.4 Key concepts and summary

Economic growth

Introduction to economic growth

1 The relatively recent arrival of economic growth

1.1 Rule of law and economic growth

1.2 Key concepts and summary

2 Labor productivity and economic growth

3 Components of economic growth

3.1 Capital deepening

3.2 Growth accounting studies

3.3 A healthy climate for economic growth

3.4 Key concepts and summary

4 Economic convergence

Introduction to unemployment

1 How the unemployment rate is defined and computed

1.1 Who’s in or out of the labor force?

1.2 Calculating the unemployment rate

1.3 Hidden unemployment

1.4 Labor force participation rate

1.5 The establishment payroll survey

1.6 How is the u.s. unemployment data collected?

1.7 Criticisms of measuring unemployment

1.8 Key concepts and summary

2 Patterns of unemployment

3 What causes changes in unemployment over the short run

3.1 Cyclical unemployment

3.2 Why wages might be sticky downward

3.3 Key concepts and summary

4 What causes changes in unemployment over the long run

Introduction to inflation

1 Tracking inflation

1.1 The price of a basket of goods

1.2 Index numbers

1.3 Key concepts and summary

2 How changes in the cost of living are measured

3 How the u.s. and other countries experience inflation

4 The confusion over inflation

5 Indexing and its limitations

5.1 Indexing in private markets

5.2 Indexing in government programs

5.3 Might indexing reduce concern over inflation?

5.4 A preview of policy discussions of inflation

5.5 Key concepts and summary

The international trade and capital flows

Introduction to the international trade and capital flows

1 Measuring trade balances

1.1 Components of the u.s. current account balance

1.2 Key concepts and summary

2 Trade balances in historical and international context

3 Trade balances and flows of financial capital

4 The national saving and investment identity

5 The pros and cons of trade deficits and surpluses

5.1 Key concepts and summary

6 The difference between level of trade and the trade balance

The aggregate demand/aggregate supply model

Introduction to the aggregate demand/aggregate supply model

1 Macroeconomic perspectives on demand and supply

1.1 Say’s law and the macroeconomics of supply

1.2 Keynes’ law and the macroeconomics of demand

1.3 Combining supply and demand in macroeconomics

1.4 Key concepts and summary

2 Building a model of aggregate demand and aggregate supply

3 Shifts in aggregate supply

4 Shifts in aggregate demand

5 How the ad/as model incorporates growth, unemployment, and inflation

6 Keynes’ law and say’s law in the ad/as model

The keynesian perspective

Introduction to the keynesian perspective

1 Aggregate demand in keynesian analysis

2 The building blocks of keynesian analysis

2.1 Wage and price stickiness

2.2 The two keynesian assumptions in the ad/as model

2.3 The expenditure multiplier

2.4 Key concepts and summary

3 The expenditure-output (or keynesian cross) model

4 The phillips curve

4.1 The discovery of the phillips curve

4.2 The instability of the phillips curve

4.3 Keynesian policy for fighting unemployment and inflation

4.4 Key concepts and summary

5 The keynesian perspective on market forces

The neoclassical perspective

Introduction to the neoclassical perspective

1 The building blocks of neoclassical analysis

2 The policy implications of the neoclassical perspective

3 Balancing keynesian and neoclassical models

Money and banking

Introduction to money and banking

1 Defining money by its functions

1.1 Barter and the double coincidence of wants

1.2 Functions for money

1.3 Commodity versus fiat money

1.4 Key concepts and summary

2 Measuring money: currency, m1, and m2

3 The role of banks

4 How banks create money

Monetary policy and bank regulation

Introduction to monetary policy and bank regulation

1 The federal reserve banking system and central banks

2 Bank regulation

3 How a central bank executes monetary policy

3.1 Open market operations

3.2 Changing reserve requirements

3.3 Changing the discount rate

3.4 Key concepts and summary

4 Monetary policy and economic outcomes

5 Pitfalls for monetary policy

5.1 Excess reserves

5.2 Unpredictable movements of velocity

5.3 Unemployment and inflation

5.4 Asset bubbles and leverage cycles

5.5 Key concepts and summary

Exchange rates and international capital flows

Introduction to exchange rates and international capital flows

1 How the foreign exchange market works

2 Demand and supply shifts in foreign exchange markets

3 Macroeconomic effects of exchange rates

4 Exchange rate policies

Government budgets and fiscal policy

Introduction to government budgets and fiscal policy

1 Government spending

1.1 Total u.s. government spending

1.2 State and local government spending

1.3 Key concepts and summary

3 Federal deficits and the national debt

4 Using fiscal policy to fight recession, unemployment, and inflation

5 Automatic stabilizers

6 Practical problems with discretionary fiscal policy

7 The question of a balanced budget

The impacts of government borrowing

Introduction to the impacts of government borrowing

1 How government borrowing affects investment and the trade balance

2 Fiscal policy, investment, and economic growth

2.1 Crowding out physical capital investment

2.2 The interest rate connection

2.3 Public investment in physical capital

2.4 Public investment in human capital

2.5 How fiscal policy can improve technology

2.6 Summary of fiscal policy, investment, and economic growth

2.7 Key concepts and summary

3 How government borrowing affects private saving

4 Fiscal policy and the trade balance

Macroeconomic policy around the world

Introduction to macroeconomic policy around the world

1 The diversity of countries and economies across the world

2 Improving countries’ standards of living

3 Causes of unemployment around the world

4 Causes of inflation in various countries and regions

5 Balance of trade concerns

Source: OpenStax, Principles of macroeconomics for ap® courses. OpenStax CNX. Aug 24, 2015 Download for free at http://legacy.cnx.org/content/col11864/1.2

	American Government MCQ By Saylor Foundation Start Quiz
	Social Dances 2 By Marion Cabalfin Start Quiz
©flickr: Luis	Final Exam Review By Madison Christian Start Exam
	8 Arts Society: Theater 8 By Jonathan Long Start Quiz
	Respiratory System Drugs By CB Biern Start Quiz
	7 AP 07 Axial Skeleton Essay By OpenStax Start Flashcards
	Nutrition Exam By Hannah Sheth Start Quiz
	1 Week 1 Social Psych By Yacoub Jayoghli Start Quiz
	Lean Startup Quiz By Yasser Ibrahim Start Quiz
	Statistics Final Review By Madison Christian Start Exam