Principles of Macroeconomics for AP® Courses 2e

Principles of Macroeconomics for AP® Courses 2e
Preface
	1. About OpenStax
	2. About OpenStax resources
	3. About Principles of Macroeconomics for AP® Courses 2e
	4. Additional resources
	5. About the authors
Chapter 1. Welcome to Economics!
	1.1. What Is Economics, and Why Is It Important?*
	1.2. Microeconomics and Macroeconomics*
	1.3. How Economists Use Theories and Models to Understand Economic Issues*
	1.4. How To Organize Economies: An Overview of Economic Systems*
	Glossary
Chapter 2. Choice in a World of Scarcity
	2.1. How Individuals Make Choices Based on Their Budget Constraint*
	2.2. The Production Possibilities Frontier and Social Choices*
	2.3. Confronting Objections to the Economic Approach*
	Glossary
Chapter 3. Demand and Supply
	3.1. Demand, Supply, and Equilibrium in Markets for Goods and Services*
	3.2. Shifts in Demand and Supply for Goods and Services*
	3.3. Changes in Equilibrium Price and Quantity: The Four-Step Process*
	3.4. Price Ceilings and Price Floors*
	3.5. Demand, Supply, and Efficiency*
	Glossary
Chapter 4. Labor and Financial Markets
	4.1. Demand and Supply at Work in Labor Markets*
	4.2. Demand and Supply in Financial Markets*
	4.3. The Market System as an Efficient Mechanism for Information*
	Glossary
Chapter 5. The Macroeconomic Perspective
	5.1. Measuring the Size of the Economy: Gross Domestic Product*
	5.2. Adjusting Nominal Values to Real Values*
	5.3. Tracking Real GDP over Time*
	5.4. Comparing GDP among Countries*
	5.5. How Well GDP Measures the Well-Being of Society*
	Glossary
Chapter 6. Economic Growth
	6.1. The Relatively Recent Arrival of Economic Growth*
	6.2. Labor Productivity and Economic Growth*
	6.3. Components of Economic Growth*
	6.4. Economic Convergence*
	Glossary
Chapter 7. Unemployment
	7.1. How Economists Define and Compute Unemployment Rate*
	7.2. Patterns of Unemployment*
	7.3. What Causes Changes in Unemployment over the Short Run*
	7.4. What Causes Changes in Unemployment over the Long Run*
	Glossary
Chapter 8. Inflation
	8.1. Tracking Inflation*
	8.2. How to Measure Changes in the Cost of Living*
	8.3. How the U.S. and Other Countries Experience Inflation*
	8.4. The Confusion Over Inflation*
	8.5. Indexing and Its Limitations*
	Glossary
Chapter 9. The International Trade and Capital Flows
	9.1. Measuring Trade Balances*
	9.2. Trade Balances in Historical and International Context*
	9.3. Trade Balances and Flows of Financial Capital*
	9.4. The National Saving and Investment Identity*
	9.5. The Pros and Cons of Trade Deficits and Surpluses*
	9.6. The Difference between Level of Trade and the Trade Balance*
	Glossary
Chapter 10. The Aggregate Demand/Aggregate Supply Model
	10.1. Macroeconomic Perspectives on Demand and Supply*
	10.2. Building a Model of Aggregate Demand and Aggregate Supply*
	10.3. Shifts in Aggregate Supply*
	10.4. Shifts in Aggregate Demand*
	10.5. How the AD/AS Model Incorporates Growth, Unemployment, and Inflation*
	10.6. Keynes’ Law and Say’s Law in the AD/AS Model*
	Glossary
Chapter 11. The Keynesian Perspective
	11.1. Aggregate Demand in Keynesian Analysis*
	11.2. The Building Blocks of Keynesian Analysis*
	11.3. The Expenditure-Output (or Keynesian Cross) Model*
	11.4. The Phillips Curve*
	11.5. The Keynesian Perspective on Market Forces*
	Glossary
Chapter 12. The Neoclassical Perspective
	12.1. The Building Blocks of Neoclassical Analysis*
	12.2. The Policy Implications of the Neoclassical Perspective*
	12.3. Balancing Keynesian and Neoclassical Models*
	Glossary
Chapter 13. Money and Banking
	13.1. Defining Money by Its Functions*
	13.2. Measuring Money: Currency, M1, and M2*
	13.3. The Role of Banks*
	13.4. How Banks Create Money*
	Glossary
Chapter 14. Monetary Policy and Bank Regulation
	14.1. The Federal Reserve Banking System and Central Banks*
	14.2. Bank Regulation*
	14.3. How a Central Bank Executes Monetary Policy*
	14.4. Monetary Policy and Economic Outcomes*
	14.5. Pitfalls for Monetary Policy*
	Glossary
Chapter 15. Exchange Rates and International Capital Flows
	15.1. How the Foreign Exchange Market Works*
	15.2. Demand and Supply Shifts in Foreign Exchange Markets*
	15.3. Macroeconomic Effects of Exchange Rates*
	15.4. Exchange Rate Policies*
	Glossary
Chapter 16. Government Budgets and Fiscal Policy
	16.1. Government Spending*
	16.2. Taxation*
	16.3. Federal Deficits and the National Debt*
	16.4. Using Fiscal Policy to Fight Recession, Unemployment, and Inflation*
	16.5. Automatic Stabilizers*
	16.6. Practical Problems with Discretionary Fiscal Policy*
	16.7. The Question of a Balanced Budget*
	Glossary
Chapter 17. The Impacts of Government Borrowing
	17.1. How Government Borrowing Affects Investment and the Trade Balance*
	17.2. Fiscal Policy, Investment, and Economic Growth*
	17.3. How Government Borrowing Affects Private Saving*
	17.4. Fiscal Policy and the Trade Balance*
	Glossary
Chapter 18. Macroeconomic Policy Around the World
	18.1. The Diversity of Countries and Economies across the World*
	18.2. Improving Countries’ Standards of Living*
	18.3. Causes of Unemployment around the World*
	18.4. Causes of Inflation in Various Countries and Regions*
	18.5. Balance of Trade Concerns*
	Glossary
Appendix A. The Use of Mathematics in Principles of Economics*
	A.1. Algebraic Models
	A.2. Growth Rates
	A.3. Displaying Data Graphically and Interpreting the Graph
	A.4. Key Concepts and Summary
	A.5. Review Questions
Appendix B. Indifference Curves*
	B.1. What Is an Indifference Curve?
	B.2. Utility-Maximizing with Indifference Curves
	B.3. Changes in Income
	B.4. Responses to Price Changes: Substitution and Income Effects
	B.5. Indifference Curves with Labor-Leisure and Intertemporal Choices
	B.6. Sketching Substitution and Income Effects
	B.7. Key Concepts and Summary
	B.8. Review Questions
Appendix C. Present Discounted Value*
	C.1. Applying Present Discounted Value to a Stock
	C.2. Applying Present Discounted Value to a Bond
	C.3. Other Applications
Solutions
	Chapter 1
	Chapter 2
	Chapter 3
	Chapter 4
	Chapter 5
	Chapter 6
	Chapter 7
	Chapter 8
	Chapter 9
	Chapter 10
	Chapter 11
	Chapter 12
	Chapter 13
	Chapter 14
	Chapter 15
	Chapter 16
	Chapter 17
	Chapter 18
References
	Index
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