Complete Macroeconomics Study Guide-AP/IB/College

Introduction

• Website: ReviewEcon.com
• Purpose: Provides study materials for AP, IB, and college-level macroeconomics.
• Updated: June 1, 2020, by Jacob Reed
• Resources Included: Games, videos, content reviews, exams preparation, and graph labeling practice.

Key Areas of Focus

Microeconomics Basics

• Fundamentals: Scarcity, opportunity cost, supply and demand
• Production Possibilities Curve (PPC): Understand and apply
• Comparative Advantage: Calculation and application

Macroeconomic Goals

• Primary Goals: Stable prices, full employment, growth
• Business Cycle: Understand different parts

Circular Flow Diagram

• Components: Flows, actors, and markets

Gross Domestic Product (GDP)

• Understanding GDP: Output-expenditure formula
• GDP Limitations: Not a perfect measure of standard of living

Inflation

• Real vs. Nominal Values: Calculation and understanding
• GDP Deflator & CPI: Calculation and application

Unemployment

• Definitions: Part of labor force, unemployment types
• Full Employment: Natural rate of unemployment

Advanced Concepts

Aggregate Supply/Demand (AS/AD) and Fiscal Policy

• AS/AD Model: Graphing and manipulation
• Economic Adjustments: Long-run equilibrium without government

Fiscal Policy Multipliers

• Marginal Propensity to Consume/Save: Calculation
• Impact on GDP: Spending and tax multipliers

Loanable Funds Market

• Graphing: Draw and manipulate shifts
• Impact: Government taxes, investment, deficits

Fiscal Policy

• Impact: On AS/AD, loanable funds, growth rate

Phillips Curve

• Understanding: SRPC and LRPC manipulation

Monetary Policy

Money Supply

• Functions of Money: Measurements and roles

Quantity Theory of Money

• Equation of Exchange (MV=PQ): Usage and application

Bank Balance Sheets

• Components: Understanding and impact on loans

Monetary Tools

• Impact: Expansionary and contractionary policy

Money Market

• Graph Analysis: Nominal interest rate impact on investment

International Markets

Foreign Exchange Markets

• Impact: Interest rates, price levels, national income

Balance of Payments

• Accounts: Current vs. financial account, balancing

Additional Resources

• Review Games: Interactive activities for practice
• Flashcards: For memorization and review
• FRQs: Free response questions for practice

Acknowledgments

• Contributors: Dick Brunelle, Steven Reff, Francis McMann, James Chasey
• Inspiration: Reffonomics.com and AP summer institutes

Disclaimer: AP, IB, and College Board trademarks are not affiliated with this material.

Copyright: 2020 Jacob Reed