AP+Macroeconomics


 * Chapter 12 **


 * Functions of Money, Definitions of M1 and M2, Value of Money, Historical background of the Federal Reserve (The Fed), The Board of Governors, The FOMC, The 12 Fed Bank locations, Functions of the Fed, Why is the Fed an independent agency?, Check out the Major U.S. Financial Institutions table on p. 238**


 * Chapter 13 **

= = =Chapter 10=
 * Fractional Reserve Banking System and the Goldsmiths, Two significant characteristics of the fractional reserve system**
 * Chapter 11 **
 * Fiscal Policy – Expansionary vs. Contractionary, Council of Economic Advisors (CEA), Show the impact of fiscal policy on the AD-AS graph, Automatic stabilizers, Progressive vs. Proportional vs. Regressive tax system, The Standardized Budget, History of deficits and surpluses, Weaknesses of fiscal policy (problems, criticisms, and complications), Crowding Out Effect – Must know the various graphic representations of this which we will cover in class, The National Debt, Who owns the national debt? The National Debt as a percentage of GDP, False concerns about the National Debt, Last Word…The Leading Indicators.**

Aggregate Demand, Why the AD curve slopes downward, Determinants of AD (Factors that cause a shift in AD), Aggregate Supply, Short run vs. Long run AS, Determinants of AS, Productivity, AD-AS Graph, Changes in equilibrium price level and equilibrium real GDP, Graphically show demand-pull inflation and cost-push inflation, Consider This…Ratchet Effect, Last Word…Has the impact of oil prices diminished?

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 * Chapter 7 **
 * Economic growth – what is it?, The Business Cycle – what is it a graph of?, Phases of the Business Cycle, Unemployment, Figuring the UE rate, Definition of employed and unemployed, Discouraged workers, Types of UE, Seasonal UE, Full Employment/Natural Rate of UE, GDP Gap, Okun’s Law, Inflation, CPI, Rule of 70, Demand Pull and Cost Push Inflation, Nominal vs. Real Income, Anticipated and Unanticipated inflation, Who is helped and who is unaffected or hurt by inflation?, Real interest rate vs. Nominal interest rate, Disinflation vs. deflation (look up), Impact of inflation on real output, Hyperinflation**
 * Chapter 8 **
 * Disposable Income, The Consumption Function Graph and the 45 degree line, Break-even income, Savings vs. Dissavings, APC, APS, MPC, MPS, Non-income determinants of consumption and saving,** **Wealth effect, Real interest rates, The interest rate-Investment relationship**
 * Chapter 6 **
 * National Income Accounting, GDP, Multiple counting, Intermediate and Final goods, What counts and what doesn’t count toward GDP?, Expenditures vs. Income approach to GDP, C+Ig+G+Xn, Gross vs. Net Investment, GDP vs. NDP,**
 * Personal vs. Disposable Income, Nominal vs. Real GDP, GDP Deflator (need to look this up), Shortcomings of GDP**
 * Also, read this artice**
 * And be able to answer application questions about the circular flow model.**

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