AP MacroeconomicsAP
GDP, inflation, unemployment, policy.
Overview
AP Macroeconomics examines the economy as a whole: output, prices, employment, monetary and fiscal policy, and international trade.
Why it matters
Equips students to interpret economic indicators and policy impacts at national and global scales.
Skills you’ll build
- AD-AS modeling
- Phillips curve analysis
- Money & banking
- Open-economy analysis
Topic Breakdown (Units)
Unit 1: Basic Economic Concepts
- Scarcity & PPC
- Comparative advantage
Unit 2: Economic Indicators and the Business Cycle
- GDP
- Inflation
- Unemployment
Unit 3: National Income and Price Determination
- Aggregate demand & supply
- Multiplier
Unit 4: Financial Sector
- Money & banking
- Loanable funds
- Monetary policy
Unit 5: Long-Run Consequences of Stabilization Policies
- Phillips curve
- Economic growth
Unit 6: Open Economy — International Trade and Finance
- Balance of payments
- Exchange rates
Lessons & Notes
Unit 1: Basic Economic Concepts
Tradeoffs and gains from trade.
- absolute vs comparative advantage
Unit 2: Economic Indicators and the Business Cycle
Measure economic performance and cycles.
- CPI
- labor force
Unit 3: National Income and Price Determination
Short-run equilibrium and gaps.
- SRAS vs LRAS
- output gap
Unit 4: Financial Sector
Interest rates, money creation, and policy tools.
- reserve ratio
- money multiplier
Unit 5: Long-Run Consequences of Stabilization Policies
Inflation-unemployment tradeoffs and growth.
- LRPC
- productivity
Unit 6: Open Economy — International Trade and Finance
How trade and capital flows affect the economy.
- appreciation/depreciation
- net exports