AP MACRO ECONOMICS/ MID-TERM REVIEW SHEET / MR. LIPMAN
The Mid-Term exam will cover Modules 1-23 of the Krugman textbook and you should be familiar with
the following terms and concepts.
1. What is Macro Economics
2. What is scarcity
3. What is opportunity cost
4. What are incentives
5. What are the movements of the business cycle
6. What is the production possibility curve and its various terms
7. What is trade specialization and comparative advantage
8. What factors will cause a shift or movement in the demand/supply curve
9. What is equilibrium
10.What are complementary products/substitution products
11.What are price ceilings/floors/shortages
12.How is GDP calculated
13.How is unemployment defined/calculated
14.What is NARU/discouraged worker/labor force/frictional unemployment
15.What is inflation/menu costs/CPI/Indexing
16.What is the marginal propensity to save/consume
17.What is planned/unplanned inventory
18.What are sticky wages/autonomous aggregate spending
19.What are positive and negative shocks/stagflation
20.What is fiscal/monetary policy
21.What is LRAS/SRAS
22.Who were John Maynard Keynes; Adam Smith; David Ricardo
23.What are government transfers
24.What are financial assets; transaction costs; liquid assets
25.What is M1;M2; near monies