AP Macroeconomics
Course Content
Unit 1: Basic Economic Concepts
You’ll start the course with an introduction to economic concepts, principles, and models that will serve as a foundation for studying macroeconomics.
Topics may include:
- Scarcity
- Opportunity cost and the Production Possibilities Curve
- Comparative advantage and gains from trade
- Supply and demand
- Market equilibrium, disequilibrium, and changes in equilibrium
On The Exam
5%–10% of exam score
Unit 2: Economic Indicators and the Business Cycle
You’ll look at how economic phenomena such as employment and inflation are measured.
Topics may include:
- The circular flow and GDP
- Unemployment
- Price indices and inflation
- Real vs. nominal GDP
- Business cycles
On The Exam
12%–17% of exam score
Unit 3: National Income and Price Determination
You’ll explore how changes in aggregate spending and production, economic fluctuations, and policy actions affect national income, unemployment, and inflation.
Topics may include:
- Aggregate demand
- Short-run and long-run aggregate supply
- Equilibrium and changes in the Aggregate Demand-Aggregate Supply Model
- Fiscal policy
On The Exam
17%–27% of exam score
Unit 4: Financial Sector
You’ll examine the financial sector and explain how monetary policy is implemented and transmitted through the banking system.
Topics may include:
- Financial assets
- Definition, measurement, and functions of money
- Banking and the expansion of the money supply
- Monetary policy
On The Exam
18%–23% of exam score
Unit 5: Long-Run Consequences of Stabilization Policies
You’ll spend more time exploring the effects of fiscal and monetary policy actions and examine the concept of economic growth.
Topics may include:
- The Phillips Curve
- Money growth and inflation
- Government deficits and national debt
- Crowding out
- Economic growth
On The Exam
20%–30% of exam score
Unit 6: Open Economy—International Trade and Finance
You’ll examine the concept of an open economy in which a country interacts with the rest of the world through product and financial markets.
Topics may include:
- Balance of payments accounts
- Exchange rates and the foreign exchange market
- Effects of changes in policies and economic conditions on the foreign exchange market
- Changes in the foreign exchange market and net exports
- Real interest rates and international capital flows
On The Exam
10%–13% of exam score
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- Each Topic to be discussed in Detail
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- Worksheet Practice Questions on Each topic
- Revision Tests (5 Mock Tests to be done by student)
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Course Duration:
- AP Macroeconomics: 30-50hrs
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