Course

AP Macroeconomics requires candidates to demonstrate the following abilities: understand the principles of economics and how economists use those principles to examine aggregate economic behavior; understand how the measures of economic performance, such as gross domestic product (GDP), inflation, and unemployment are constructed and how to apply them to evaluate the macroeconomic conditions of an economy. The topics include: basic economic concepts; measurement of economic performance (national income accounts; inflation measurement and adjustment; and unemployment); national income and price determination (aggregate demand and supply; and macroeconomics equilibrium); financial sector (money, banking, and financial markets; loanable funds market; central bank and control of the money supply); stabilization policies (fiscal and monetary policies; and the Phillips curve); economic growth (definition; determinants; growth policy); and open economy: international trade and finance (balance of payments accounts; foreign exchange market; imports, exports, and financial capital flows; and relationships between international and domestic financial and goods markets).