Here you will find AP Economics outlines for the Macroeconomics, 15th Edition Textbook. These economics notes cover all of the key topics covered in the Macroeconomics, 15th edition textbook. You can use these AP economic outlines to study for the AP Economics exam or any other economics test.
Definition of Economics
The Economic Perspective
Why Study Economics?
Macroeconomics and Microeconomics
Pitfalls to Objective Thinking
A Look Ahead
LAST WORD: Fast Food Lines-An Economic Perspective
The foundation of economics is the economizing problem: society's material wants are unlimited while resources are limited or scarce.
Economics: Employment and Efficiency
Production possibilities tables and curves are a device to illustrate and clarify the economizing problem.
Unemployment, Growth, and the Future
(See for example Global Perspective 2-1 where various countries are compared with respect to their economic growth rates relative to the share of GDP devoted to investment.)
Economic systems differ in two important ways: Who owns the factors of production and the method used to coordinate economic activity.
The Circular Flow Model for a Market-Oriented System (Key Graph 2-6)
LAST WORD: Women and Expanded Production Possibilities
Characteristics of the Market System
The Market System at Work
Competition and the "Invisible Hand":
LAST WORD: Shuffling the Deck
Goals of Chapter
Households as Income Receivers
Households As Spenders (Figure 5-3) (Figure is based on PI-Personal Income)
The Business Population
The Public Sector: Government's Role
Circular Flow Revisited
Federal Finance (see Figure 5.8)
State and Local Finance
LAST WORD: The Financing of Corporate Activity
Assessing the Economy's Performance
Gross Domestic Product
Other National Accounts (see Table 7.4)
Circular Flow Revisited (see Figure 7.3)
Nominal Versus Real GDP
The Consumer Price Index (CPI)
Shortcomings of GDP
LAST WORD: Feeding the GDP Accounts
Introduction: This chapter provides an introductory look at trends of real GDP growth and the macroeconomic problems of the business cycle, unemployment and inflation.
Economic Growth-how to increase the economy's productive capacity over time.
Overview of the Business Cycle
Unemployment (One Result of Economic Downturns)
Inflation: Defined and Measured
Redistributive effects of inflation:
Output Effects of Inflation
LAST WORD: The Stock Market and The Economy: How, if at all, do changes in stock prices relate to macroeconomic stability?
Introduction-What Determines GDP?
Simplifying Assumptions for this Chapter
Tools of Aggregate Expenditures Theory: Consumption and Saving
Equilibrium GDP: Expenditures-Output Approach
Two Other Features of Equilibrium GDP
Last Word: Say's Law, The Great Depression, and Keynes
Changes in Equilibrium GDP and the Multiplier
International Trade and Equilibrium Output
Adding the Public Sector
Equilibrium vs. Full-Employment GDP
Limitations of the Model
LAST WORD: Squaring the Economic Circle
Introduction to AD-AS Model
Aggregate demand is a schedule that shows the various amounts of real domestic output that domestic and foreign buyers will desire to purchase at each possible price level.
Aggregate supply is a schedule showing level of real domestic output available at each possible price level.
Equilibrium: Real Output and the Price Level
LAST WORD: Why Is Unemployment in Europe So High?
Legislative mandates-The Employment Act of 1946
Fiscal Policy and the AD/AS Model
Evaluating Fiscal Policy
Problems, Criticisms and Complications
Fiscal Policy in an Open Economy (See Table 12-2)
Supply‑Side Fiscal Policy
LAST WORD: The Leading Indicators
Functions of Money
Supply of Money
What "backs" the money supply?
The Demand for Money : Two Components
The Money Market: Interaction of Money Supply and Demand
The Federal Reserve and the Banking System
Recent Developments in Money and Banking
LAST WORD: The Global Greenback
Introduction: Although we are fascinated by large sums of currency, people use checkable deposits for most transactions.
Balance Sheet of a Single Commercial Bank
History of Fractional Reserve Banking: The Goldsmiths
Money Creation Potential by a Single Bank in the Banking System
o Likewise, when banks or the Federal Reserve sell government securities to the public, they decrease supply of money like a loan repayment does.
The Entire Banking System and Multiple‑Deposit Expansion (all banks combined)
LAST WORD: The Bank Panics of 1930-1933
Introduction to Monetary Policy
Consolidated Balance Sheet of the Federal Reserve Banks
The Fed has Three Major "Tools" of Monetary Policy
Monetary Policy, Real GDP, and the Price Level: How Policy Affects the Economy
Effectiveness of Monetary Policy
The Big Picture (see Key Graph, Figure 15-4) Shows Many Interrelationships
LAST WORD: For the Fed Life is a Metaphor
Short-Run and Long-Run Aggregate Supply
Applying the Extended AD-AS Model
The Phillips Curve and the Inflation - Unemployment Tradeoff
Long-Run Vertical Phillips Curve
Taxation and Aggregate Supply
Six Main Ingredients of Growth
Production Possibilities Analysis (Figure 17-1)
Growth Record of the United States (Table 17-5)
Accounting for growth is an attempt to quantify factors contributing to economic growth as shown in Table 17-1. Important research has been done in the area by Edward Denison.
Productivity Growth and the New Economy (Figure 17-7)
Is Growth Desirable and Sustainable?
LAST WORD: Some Pleasant Side Effects of the New Economy
Minority well being improved with decreased poverty and unemployment rates
Definitions of deficit, surplus and debt
Three Budget Philosophies
The Public Debt: Facts and Figures
Deficits and Surpluses: 1990-2010
Last Word: Debt Reduction and the U.S. Trade Deficit
Introduction: Disagreements about Macro Theory and Policy
Some History: Classical Economics
What Causes Macro Instability such as Great Depression, Recessions, Inflationary Periods?
Does the Economy "Self-Correct"?
Rules or Discretion?
Last Word: The Taylor Rule: Could a Robot Replace Alan Greenspan?
Critics of the proposal see no reason for this rule given the success of monetary policy in the past decade.