Description
AP® Macroeconomics is designed to meet the scope and sequence requirements of a typical one-semester Macroeconomics course. The text provides comprehensive coverage of economic principles, research, and impacts. AP® Macroeconomics has been designed to meet and exceed the requirements of the College Board’s AP® Macroeconomics Framework, while allowing significant flexibility for instructors.
Each section of the book also includes sections and assessments that aid in AP® test preparation. Content requirements for AP® Macroeconomics are prescribed by the College Board Publication: Advanced Placement Course in Macroeconomics.
This open-education-resource instructional material by TEA is licensed under a Creative Commons Attribution 4.0 International Public License in accordance with Chapter 31 of the Texas Education Code.
Book Outline
- Introduction
- 1.1 What Is Economics, and Why Is It Important?
- 1.2 Microeconomics and Macroeconomics
- 1.3 How Economists Use Theories and Models to Understand Economic Issues
- 1.4 How Economies Can Be Organized: An Overview of Economic Systems
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Test Prep For AP® Courses
- Introduction to Choice in a World of Scarcity
- 2.1 How Individuals Make Choices Based on Their Budget Constraint
- 2.2 The Production Possibilities Frontier and Social Choices
- 2.3 Confronting Objections to the Economics Approach
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Demand and Supply
- 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
- 3.2 Shifts in Demand and Supply for Goods and Services
- 3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process
- 3.4 Price Ceilings and Price Floors
- 3.5 Demand, Supply, and Efficiency
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Labor and Financial Markets
- 4.1 Demand and Supply at Work in Labor Markets
- 4.2 Demand and Supply in Financial Markets
- 4.3 The Market System as an Efficient Mechanism for Information
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to the Macroeconomic Perspective
- 5.1 Measuring the Size of the Economy: Gross Domestic Product
- 5.2 Adjusting Nominal Values to Real Values
- 5.3 Tracking Real GDP Over Time
- 5.4 Comparing GDP Among Countries
- 5.5 How Well GDP Measures the Well-Being of Society
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Economic Growth
- 6.1 The Relatively Recent Arrival of Economic Growth
- 6.2 Labor Productivity and Economic Growth
- 6.3 Components of Economic Growth
- 6.4 Economic Convergence
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Unemployment
- 7.1 How the Unemployment Rate is Defined and Computed
- 7.2 Patterns of Unemployment
- 7.3 What Causes Changes in Unemployment Over the Short Run
- 7.4 What Causes Changes in Unemployment Over the Long Run
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Inflation
- 8.1 Tracking Inflation
- 8.2 How Changes in the Cost of Living are Measured
- 8.3 How the United States and Other Countries Experience Inflation
- 8.4 The Confusion Over Inflation
- 8.5 Indexing and its Limitations
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to the International Trade and Capital Flows
- 9.1 Measuring Trade Balances
- 9.2 Trade Balances in Historical and International Context
- 9.3 Trade Balances and Flows of Financial Capital
- 9.4 The National Saving and Investment Identity
- 9.5 The Pros and Cons of Trade Deficits and Surpluses
- 9.6 The Difference Between Level of Trade and the Trade Balance
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to the Aggregate Demand/Aggregate Supply Model
- 10.1 Macroeconomic Perspectives on Demand and Supply
- 10.2 Building a Model of Aggregate Demand and Aggregate Supply
- 10.3 Shifts in Aggregate Supply
- 10.4 Shifts in Aggregate Demand
- 10.5 How the Aggregate Demand/Aggregate Supply Model Incorporates Growth, Unemployment, and Inflation
- 10.6 Keynes' Law and Say's Law in the Aggregate Demand/Aggregate Supply Model
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to the Keynesian Perspective
- 11.1 Aggregate Demand in Keynesian Analysis
- 11.2 The Building Blocks of Keynesian Analysis
- 11.3 The Expenditure-Output or Keynesian Cross Model
- 11.4 The Phillips Curve
- 11.5 The Keynesian Perspective on Market Forces
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Test Prep For AP® Courses
- Introduction to the Neoclassical Perspective
- 12.1 The Building Blocks of Neoclassical Analysis
- 12.2 The Policy Implications of the Neoclassical Perspective
- 12.3 Balancing Keynesian and Neoclassical Models
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Money and Banking
- 13.1 Defining Money by Its Functions
- 13.2 Measuring Money: Currency, M1, and M2
- 13.3 The Role of Banks
- 13.4 How Banks Create Money
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Monetary Policy and Bank Regulation
- 14.1 The Federal Reserve Banking System and Central Banks
- 14.2 Bank Regulation
- 14.3 How a Central Bank Executes Monetary Policy
- 14.4 Monetary Policy and Economic Outcomes
- 14.5 Pitfalls for Monetary Policy
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Exchange Rates and International Capital Flows
- 15.1 How the Foreign Exchange Market Works
- 15.2 Demand and Supply Shifts in Foreign Exchange Markets
- 15.3 Macroeconomic Effects of Exchange Rate
- 15.4 Exchange Rate Policies
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Government Budgets and Fiscal Policy
- 16.1 Government Spending
- 16.2 Taxation
- 16.3 Federal Deficits and the National Debt
- 16.4 Using Fiscal Policy to Fight Recession, Unemployment, and Inflation
- 16.5 Automatic Stabilizers
- 16.6 Practical Problems with Discretionary Fiscal Policy
- 16.7 The Question of a Balanced Budget
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to the Impacts of Government Borrowing
- 17.1 How Government Borrowing Affects Investment and the Trade Balance
- 17.2 Fiscal Policy, Investment, and Economic Growth
- 17.3 How Government Borrowing Affects Private Saving
- 17.4 Fiscal Policy and the Trade Balance
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Macroeconomic Policy Around the World
- 18.1 The Diversity of Countries and Economies Across the World
- 18.2 Improving Countries' Standards of Living
- 18.3 Causes of Unemployment Around the World
- 18.4 Causes of Inflation in Various Countries and Regions
- 18.5 Balance of Trade Concerns
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses