Unit 4 Test Review

-Multipliers:  Government and Investment Spending Multipliers (or Expenditure Multipliers), Tax Multiplier, Balanced Budget Multiplier and the effect of fiscal policy on GDP.

-AD/AS Model, Determinants of AD and AS, why AD slopes downward.

-Foreign Exchange Market, Appreciation and Depreciation, as well as their effects on Imports/Exports

-MPC and MPS Calculation

-Nominal and Real GDP and Interest Rates

-Keynesian v. Classical Economic Theory

-CPI

-3 ranges of AS

-Unanticipated Inflation

-Phillips Curve

MacroEcon Overview Test Concepts

GDP-money spent and money received approach or flow of product and earnings or cost approach

GDP and economic well-being page 4 in packet, what is included and what isn’t for consumption, investment, gov’t spending and net exports, real v nominal GDP, Consumer Confidence and GDP

Shifts in AD and AS

Positive supply shocks and labor productivity,negative supply shocks and oil price increases, 

Restrictive or tight monetary policy v loose or expansionary monetary policy, contractionary  v expansionary fiscal policy-fiscal policy and interest rates

crowding out effect

Unemployment rate and types of unemployment

HW Post due Friday 1/39: Elastic/Inelastic

Make a post on THIS comment (theres a button right below these words) in which you describe two goods that are ELASTIC to you and two goods that are INELASTIC to you.

Each good must have at least a one sentence explanation of why it is elastic/inelastic and the description should have a solid grounding in economic language. No post can repeat the items of a previous post so post EARLY.

My examples:

Videogames are an inelastic good to me because I need them, and there are definitely no close substitutes for Halo or Metal Gear Solid.

Deadorant is elastic in my opinion because I can make it through the day without it and if it comes to it I can always just wear an undershirt.

Have fun with these and be creative! One point extra credit if I lol.

Class Websites

Both of these websites have the powerpoints that will be used in class as well as practice quizzes, questions and other supplemental resources:

http://www.mhhe.com/economics/mcconnell15e/

http://wps.prenhall.com/bp_hubbard_econ_2/

Welcome!

This is the class website for Mr. Leagans 6th Period AP Macroeconomics class.  Homework assignments, discussion topics and class schedules will be posted regularly at this address.