Ap macroeconomics Exam: Course Study Guide [ unit I ] What is economics?
The BIG Picture of Fiscal/Monetary Policy
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[ UNIT VI ] International Economics
The BIG Picture of Fiscal/Monetary Policy
AD
PL
rGDP
UE
E
r
FISCAL POLICY
EXPANSIONARY
G
potential
crowding
out
T
income
T
corporate
CONTRACTIONARY
G
T
income
T
corporate
MONETARY POLICY
EXPANSIONARY
OMO buy
potential
accommodating
monetary
policy
discount rate
reserve requirement
CONTRACTIONARY
OMO sale
discount rate
reserve requirement
[ UNIT VI ]
International
Economics
r
in county X
r in the U.S.,
relative to country X
capital
outflow from country X OR
capital inflow to the U.S.
demand for dollar
denominated financial assets
D
$
appreciation
of the US$
relative to the X$ from (e
1
– e
2
)
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