By the end of this section, you will be able to:
Evaluate how neoclassical economists and Keynesian economists react to recessions
Analyze the interrelationship between the neoclassical and Keynesian economic models
By the end of this section, you will be able to:
Explain the importance of potential GDP in the long run
Analyze the role of flexible prices
Interpret a neoclassical model of aggregate demand and aggregate supply
Evaluate different ways for measuring the speed of macroeconomic adjustment
By the end of this section, you will be able to:
Discuss why and how economists measure inflation expectations
Analyze the impacts of fiscal and monetary policy on aggregate supply and aggregate demand
Explain the neoclassical Phillips curve, noting its tradeoff between inflation and unemployment
Identify clear distinctions between neoclassical economics and Keynesian economics
By the end of this section, you will be able to:
Calculate the labor force participation rate and the unemployment rate
Explain hidden unemployment and what it means to be in or out of the labor force
Evaluate the collection and interpretation of unemployment data
By the end of this section, you will be able to:
Explain historical patterns of unemployment in the U.S.
Identify trends of unemployment based on demographics
Evaluate global unemployment rates
By the end of this section, you will be able to:
Explain frictional and structural unemployment
Assess relationships between the natural rate of employment and potential real GDP, productivity, and public policy
Identify recent patterns in the natural rate of employment
Propose ways to combat unemployment
By the end of this section, you will be able to:
Analyze cyclical unemployment
Explain the relationship between sticky wages and employment using various economic arguments
Apply supply and demand models to unemployment and wages
By the end of this section, you will be able to:Interpret a circular flow diagramExplain the importance of economic theories and modelsDescribe goods and services markets and labor markets
By the end of this section, you will be able to:Contrast traditional economies, command economies, and market economiesExplain gross domestic product (GDP)Assess the importance and effects of globalization
By the end of this section, you will be able to:Describe microeconomicsDescribe macroeconomicsContrast monetary policy and fiscal policy
By the end of this section, you will be able to:Discuss the importance of studying economicsExplain the relationship between production and division of laborEvaluate the significance of scarcity
This course is designed to introduce classic macroeconomic issues such as growth, inflation, unemployment, interest rates, exchange rates, technological progress, and budget deficits. The course will provide a unified framework to address these issues and to study the impact of different policies, such as monetary and fiscal policies, on the aggregate behavior of individuals. These analytical tools will be used to understand the recent experience of the United States and other countries and to address how current policy initiatives affect their macroeconomic performance.
Principles of Macroeconomics for AP® Courses covers the scope and sequence for a one-semester Advance Placement Macroeconomics course. The book is on the example textbook list for the AP® course here. The text also includes many current examples, including the housing bubble and housing crisis, Zimbabwe’s hyperinflation, global unemployment, and the appointment of the United States’ first female Federal Reserve chair, Janet Yellen.