Topics covered in AP Macro class that will be on the 2014 Final Exam:

  1. economic growth
  2. full employment
  3. price stability and effects of inflation
  4. GDP versus GNP
  5. goods versus services
  6. “win-win” scenarios (as opposed to “zero sum game” scenarios
  7. what’s included and not included in GDP
  8. real GDP versus nominal GDP
  9. real interest rate versus nominal interest rate
  10. unanticipated inflation
  11. nominal vs. real income (salary)
  12. why stable prices are important
  13. kinds of unemployment
  14. what is included and what is not included in “unemployment” for purposes of the unemployment rate
  15. exports versus imports
  16. net exports
  17. labor force versus not in the labor force
  18. the 3 macroeconomic goals of the economy
  19. the 3 basic economic questions (or coordination questions)
  20. normative versus positive economics
  21. i.e. versus e.g.
  22. definition of economics, macroeconomics, markets, aggregates, models, scarcity, and opportunity cost, PPF, PPC, intermediate vs. final goods
  23. what is “free” and what one “needs” in economics
  24. PPF (PPC) graph
  25. shifts out or in of the ppf
  26. shape of the ppf: straight-line versus bowed out from the origin
  27. inefficient, efficient, and unattainable points in a PPC
  28. rational decision
  29. anticipated inflation, expected inflation, and inflationary expectations
  30. country’s production of consumption goods vs. capital goods
  31. inputs and outputs
  32. comparative advantage vs. absolute advantage
  33. ceteris paribus
  34. demand
  35. quantity demanded versus demand
  36. movement along a demand curve versus changes in demand
  37. determinants that shift demand, including, among other things, normal versus inferior goods and substitutes versus complements
  38. supply
  39. quantity supplied versus supply
  40. movement along a supply curve versus changes in supply
  41. determinants that shift supply
  42. equilibrium and equilibrium coordinates
  43. “circular flow of the economy” economic model
  44. expenditure formula for GDP and AD
  45. National Income formula
  46. closed versus open economy
  47. who exercises fiscal policy
  48. two tools of fiscal policy; also budget deficit and budget surplus
  49. The Fed as central bank, bank for banks, and banks for the US Treasury
  50. who exercises monetary policy
  51. business cycle graph
  52. demand, supply, and market graphs
  53. AS/AD graph of the entire economy
  54. GDP per capita
  55. Nominal versus real interest rates
  56. short-run aggregate supply curve and its 3 parts
  57. inflation and purchasing power
  58. short-run versus long-run
  59. short-run tradeoff between inflation and unemployment
  60. free-market, command, and mixed economies
  61. sunk versus marginal costs
  62. Adam Smith, David Ricardo, Keynes
  63. surplus versus shortage
  64. fallacy of composition
  65. correlation fallacy
  66. economic indicators, including without limitation CPI, GDP Deflator and PPI
  67. functions of money
  68. costs of inflation: menu costs, shoe leather costs, and unit of accounts costs
  69. calculating CPI using market basket method
  70. calculating total market basket cost/year
  71. calculating Price Index (CPI)
  72. what is and role of “base year”
  73. calculating percentage change in inflation rate (CPI)
  74. calculating GDP Deflator Index numbers
  75. CalculatingReal GDP from nominal GDP and GDP Deflator
  76. current dollars GDP vs. constant dollars GDP
  77. percentage change in real GDP
  78. long-term unemployment
  79. effect of Great Recession on unemployment
  80. Reason why AD has negative slope
  81. Determinants that shift AD
  82. “strings”
  83. tampering with the price mechanism
  84. hyperinflation
  85. progressive income tax and tax brackets
  86. government budget, balanced budget, budget deficit, and budget surplus
  87. national debt
  88. trade deficit or surplus
  89. transfer payments
  90. valid reasons for government regulation of the economy
  91. effect of unanticipated inflation
  92. the crucial problem of economics
  93. externalities
  94. what economic analysis is useful for