AP, IB, and College Microeconomic and Macroeconomic Principles 

Macroeconomics Principles Review

Macroeconomics Principles Review

A study guide to help make sure you don’t miss any important concepts when you start your review of microeconomics. ​

The Advanced Placement Macroeconomics exam is more math heavy than the Microeconomics exam. Make sure you are familiar with all of the formulas you find here. 

There are 7 graphs you need to know by the day of the Advanced Placement Macroeconomics exam. This page will help you review the key points for each of them. 

Run down of the simplified Circular Flow Model including economic actors and the flows of resources, products and money. 

A quick overview of the different parts of the business cycle along with the difficulties that come along with those different parts. 

Overview of the different methods for calculating GDP and the problems with using it as a perfect measurement for standard of living.

What is the relationship between the nominal interest rate, real interest rate, and inflation rate? The Fisher formula has an answer for us. Learn all about it in the link above. 

Review page covering how to calculate the GDP Deflator and CPI as well as use them to calculate real from nominal values.

Everything you nee to know about the unemployment rate, how it is calculated, different types of unemployment and the natural rate of unemployment. 

Key concepts you need to know about Production Possibilities Curves and an activity to help you practice working with the PPC. 

Review covering APC, APS, MPC, and MPS along with the spending and tax multipliers. 

Extensive review of the AS/AD graph including long-run and short-run equilibrium, shifters, axis labels, etc. 

An overview of the entire loanable funds market. It includes labels, determinants of supply and demand, along with different methods for dealing with crowding out. 

Covers all of the basics of fiscal policy, how it impacts the overall economy, the AS/AD model, as well as the loanable funds market. 

Functions of money, sources of value, measures of the money supply, and the quantity theory of money. 

Quick overview of the what you need to know about financial assets, and the relationship between interest rates and bond prices.

Learn what the time value of money is and how to calculate both present value and future value with a given interest rate. Learn when to include or exclude the inflation rate. 

Covers all the tools of the Federal Reserve that can be used to close an inflationary or recessionary gap. There is a fiscal and monetary policy sorting activity to try when you are done reviewing.

Get a quick review of the different parts of a bank balance sheet then test yourself with an activity that covers bank balance sheets and how actions of the fed, consumers, and bank owners affect a bank balance sheet.

All of the key points to understanding the money market graph along with a flash review game to test yourself and make sure you are ready for exam day.

Learn how monetary policy and fiscal policy interact to impact the price level, real output, and the interest rate. 

A full rundown on the Long-run Phillips Curve and Short-run Phillips Curve. Axis labels and determinants are all covered. 

Everything you need to know about Absolute Advantage, Comparative Advantage, and Terms of Trade.

Everything you need to know about the foreign exchange markets including every axis, curve, and determinants. Review it all here to prepare for this part of the Advanced Placement Macroeconomics exam. 

The balance of payments is an accounting of transactions between countries. Learn all about it here.