If you’re looking for an AP® Macroeconomics score calculator, you’ve come to the right place. See how you would score on the AP® Macroeconomics exam
GDP, national budget, loanable funds market, macroeconomics equilibrium… if these terms fill you with dread or anxiety, you might be studying for the AP® Macroeconomics exam. Even if you haven’t started studying yet, AP® Macro may seem overwhelming at first. There are so many terms, graphs, and concepts you have to develop a deep understanding of.
GDP, or Gross Domestic Product, is that term economists use to determine how well or poorly an economy is doing. That’s easy enough. It is the total combined monetary value of a society’s goods and services produced within a given period of time.
The Phillips Curve is really a simple concept. It measures the relationship between inflation and unemployment, or the trade off between inflation and unemployment. The more inflation (aka the higher the prices of goods and services) the lower the unemployment; the lower the inflation (aka the lower the prices of goods and services) the higher the unemployment. Do you see that? It’s a trade-off.
The AP® Macroeconomics test can seem mind-numbing and challenging if you are new to economics. Looking at the course from the outside, it seems like you will be bombarded with endless theories and graphs that contain unrecognizable terminologies and symbols. The truth is, macroeconomics, and economics in general, is a lot easier than what it looks like at a glance.
You may have heard about the Federal Reserve from the news, such as when it adjusts interest rates or starts to buy bonds to increase the money supply. Federal Reserve’s monetary policy works in conjunction with the government’s fiscal policy to control the economy’s stability.
If you are having a hard time understanding these two concepts for your AP® Macroeconomics exam, then this article is for you. We will look into the concepts, what shifts aggregate demand and aggregate supply, and why these concepts are important. We will also see how you can be tested on these concepts on the AP® exam.
Economists use different terms for different measures of the money supply; specifically, they will refer to M1, M2, and M3. So, what are M1, M2, and M3, and how does it apply to the supply of money? In this crash course review, you’ll find out exactly what M1, M2, and M3 are, and you’ll learn how they apply to concepts that you’re used to, such as currency or checkable deposits.
If you’ve started studying for the AP® Microeconomics or AP® Macroeconomics exam, then you’ll need to know the essential concepts. One of the most important distinctions you’ll come across in your studies is absolute vs. comparative advantage. So what’s the difference between these two concepts? And why are they so important?