Ap macroeconomics Exam: Course Study Guide [ unit I ] What is economics?


The BIG Picture of Fiscal/Monetary Policy



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The BIG Picture of Fiscal/Monetary Policy





AD

PL

rGDP

UE

E

r




FISCAL POLICY

EXPANSIONARY

 G













potential

crowding


out

 Tincome













 Tcorporate













CONTRACTIONARY

 G
















 Tincome













 Tcorporate













MONETARY POLICY

EXPANSIONARY

OMO buy













potential

accommodating

monetary

policy


discount rate













reserve requirement













CONTRACTIONARY

OMO sale
















 discount rate













 reserve requirement














[ UNIT VI ]

International Economics







 demand for dollar denominated financial assets



 D$



appreciation of the US$ relative to the X$ from (e1 – e2)


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