Index of Vocabulary

AP Macro Economics

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Index of Vocabulary Terms of AP Macro Economics The following vocabulary terms will be randomly tested during CFUs, Problem Set Examinations, and the Final Examination. In nearly all cases, there is a math concept and graphical analyses that is connected with each term.
45 degree line Absolute advantage Accerlerationist model Adaptive expectations hypothesis AE Aggregate demand (AD) Aggregate supply, long run (LRAS) Aggregate supply, short run (SRAS) Anticipated Inflation Appreciation Assets Automatic stabilizers Autonomous consumption Average propensity to consume (APC) Average propensity to save (APS) Balance of payments Balance sheet Balanced budget multiplier Base year Board of governors Business cycle Capital consumption allowance Capital inflows Capital outflows Central bank Circular flow Classical range COLA Commercial bank Commodity money Comparative advantage Consumer price index Consumption function Corporate profits Cost push inflation Crowding out Cyclical unemployment Deficit Deficit Demand deposits Demand pull inflation Excess supply curve Exchange rate Exports Expected rate of return FED Federal debt Fiat money Financial intermediaries Fiscal policy Flexible exchange rates Fractional reserve banking Frictional unemployment FRS Full-employment (FE) Gains from trade GDP GDP deflator GDP gap GNP Gross private investment (IG) Growth recessions Imports Imports Income expenditure model (IEM) Indirect business taxes Infant industry Inflation Inflationary gap Inflationary recession Intermediate range Inventory Inventory investment J curve effect Keynesian range Labor force participation rate Laffer curve Lags Liabilities Liquidity Loanable fund market M-1 Natural rate of unemployment Net exports Net national product Net private investment (IN) Net Taxes New classical economics Nominal GDP Nominal income Open Market Operations Paradox of thrift Permanent income hypothesis Personal consumption (C) Personal income Phillips curve Potential output Price index Price level Proprietors income Protection Quantity theory of money Rational expectations Real GDP Real income Real interest rate Realized investment Recession Recessionary gap Recognition lag Required reserve rate S S=Y-C Savings Says law Stabilization policy Stagflation State bank Sticky prices Structural unemployment Supply shocks Supply side economics Tariffs

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Index of Vocabulary

AP Macro Economics

Page: 123

Demand shocks Deposit multiplier Depreciation Depreciation Discount rate Disequilibrium Disposable Income (Yd) Dumping Easy monetary policy Economic growth Equation of exchange Equilibrium Excess demand curve Excess reserves

Marginal propensity to consume (MPC) Marginal propensity to save (MPS) Medium of exchange Monetarism Monetary policy Money GDP Money market Money multiplier Multiplier Multiplier effects NAFTA National banking National income Natural rate of unemployment

Tax multiplier T-bills Tight monetary policy Transaction demands Transmission effect Unanticipated inflation Unemployment Unemployment rate Unplanned inventory Value added Velocity

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