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Macroeconomics

Free Macroeconomics study guide: 6 units with summaries, key ideas, flashcards and 92 practice questions with step-by-step solutions.

Lines up with: AP Macroeconomics; CLEP Principles of Macroeconomics.

Units

1. UNIT 01

   Basic economic concepts

   Macroeconomics starts with scarcity, tradeoffs, gains from trade and how supply and demand set prices.
2. UNIT 02

   Economic indicators and the business cycle

   GDP, unemployment and inflation measure the economy's health, and the business cycle describes its ups and downs.
3. UNIT 03

   National income and price determination

   The AD–AS model shows how output and the price level are determined and how fiscal policy can close recessionary and inflationary gaps.
4. UNIT 04

   Financial sector

   Banks create money through lending, the Federal Reserve controls the money supply and interest rates, and the loanable funds market links saving and investment.
5. UNIT 05

   Long-run consequences of stabilization policies

   In the long run, policy affects prices more than output; the Phillips curve tradeoff disappears, and growth depends on productivity.
6. UNIT 06

   Open economy: international trade and finance

   Trade and capital flows link economies through the balance of payments and exchange rates, which respond to interest rates and policy.