AP®︎ Macroeconomics Unit 5: Notes & Study Guide
Prepare for your quiz, test, or the AP exam with a comprehensive review on Unit 5 of AP Macroeconomics – Long–Run Consequences of Stabilization Policies.
Unit 5: Long–Run Consequences of Stabilization Policies
This unit examines the long-run effects of stabilization policies and investigates how fiscal and monetary tools impact economic growth and price stability.
Begin with Topic 5.1: Fiscal and Monetary Polic...To review Unit 5, go through each of the 7 topics below.
Everything you actually need to know for your Unit 5 test, pulled directly from the AP® Macroeconomics curriculum.
Fiscal and Monetary Policy Actions in the Short Run
Fiscal and Monetary Policy Actions in the Short Run
- Fiscal and Monetary Policy in the Short Run
- The Two Output Gaps Policymakers Are Trying to Fix
- Fiscal and Monetary Policy Tools and Their Direction
The Phillips Curve
The Phillips Curve
- What the Phillips Curve Shows
- Short-Run and Long-Run Equilibrium
- Demand Shocks and Movements Along the SRPC
Money Growth and Inflation
Money Growth and Inflation
- Inflation as a Monetary Phenomenon
- Demand-Pull, Cost-Push, and the Wage-Price Spiral
- The Quantity Theory of Money
Government Deficits and the National Debt
Government Deficits and the National Debt
- The Government Budget Balance and the National Debt
- What the Federal Government Spends Money On
- Why Governments Run Deficits
Crowding Out
Crowding Out
- What Crowding Out Is
- The Loanable Funds Model and Government Borrowing
- How Crowding Out Reduces the Impact of Fiscal Policy
Economic Growth
Economic Growth
- Economic Growth Measured by Real GDP per Capita
- The Aggregate Production Function and Productivity
- How Growth Appears on Graphs
Public Policy and Economic Growth
Public Policy and Economic Growth
- What Economic Growth Is and How Policy Affects It
- Government Policies That Promote Long-Run Growth
- Supply-Side Fiscal Policy
Notes
1 credit used · 5/5 remaining