Download AP Macroeconomics - Spring Branch ISD

AP Macroeconomics
Final Exam Project
Tutorial Topics
Unit One;
 Eight goals of macroeconomics
 Pit falls and fallacies of macroeconomics (Normative statements, definitions,
loaded terminology, etc.)
 The circular flow model.
 The factors of production & their payments.
 Opportunity cost & trade-offs.
 The production possibilities curve with practice simulation.
Unit Two;
 The demand curve & shifters.
 The supply curve & shifters.
 Elasticity of demand.
 Characteristics of a market system.
 Fundamental question of economic systems & types of economic systems.
 Adam Smith & the invisible hand.
 The supply and demand model with practice simulation.
Unit Three;
 The Business Cycle.
 The labor force & calculating unemployment rates.
 Types of unemployment.
 Natural rate of unemployment, actual/potential GDP, & Okun’s law.
 Inflation & calculating inflation rates.
 Market baskets & consumer price index.
 Types of inflation.
 GDP & calculating GDP (including depreciation of capital).
 Things not counted in GDP & short-comings of GDP.
 National accounts calculations.
 Nominal & real GDP.
Unit Four;
 The aggregate expenditure model & shifters.
 APC/APS & MPC/MPS.
 Investments, rate of return, & real interest rates.
 The investment demand curve & shifters.
 Volatility of investments.
 The multiplier effect & how it affects the AE model.
 The tax multiplier & how it affects the AE model.
 The balanced budget multiplier & how it affects the AE model.
 Injections & leakages.
Unit Five;
 Relating the aggregate expenditure curve to the aggregate demand curve.
 Differences between the demand curve & the aggregate demand curve.
 The aggregate demand curve & shifters.
 The three segmented AS curve.
 The aggregate supply curve & shifters.
 The ratchet effect.
 The AS/AD model with practice simulation.
 Expansionary & contractionary fiscal policy.
 The crowding-out & crowding-in affect.
 Discretionary & non-discretionary fiscal policy: explain automatic stabilizers.
 Full-employment budget & full-employment deficits.
 Problems with fiscal policy.
Unit Six;
 Functions of money, types of money, & money definitions.
 The money market model with monetary & fiscal simulations.
 The secondary bond market.
 The structure & functions of the Federal Reserve Banking System.
 The money multiplier effect.
 Monetary policy & its tools.
 Easy money & tight money monetary policy.
Unit Seven;
 Effects of demand-pull inflation on long-run aggregate supply.
 Effects of supply-push inflation on long-run aggregate supply & govt. actions.
 The Philips curve with practice simulation.
 The Laffer curve & supply-side economic theory.
 Public debt & factors that contribute to it.
 False & real concerns about the public debt.
 Budgetary philosophies.
Unit Eight;
 Specialization & comparative advantage.
 National comparative advantage.
 Terms of trade.
 How global prices are set.
 The foreign exchange model with practice simulation.
 Balance of trade accounts.