AP宏观经济 - 图文

Syllabus of AP Macroeconomics

1.The Production Possibilitles Curve or Frontier

PPF/PPC:The PPC models scarcity, since there is only a certain amount of any two goods that can be produced and consumed due to the limited nature of resources.(maximum ability to produce)

左边的图，反映了constant opp.cost右边的图，反映了increasing opp.cost

右图：

A,B,C,D-----attainable and efficient(productively efficient) E-----attainable but inefficient F-----unattainable

3.comparative advantage and absolute advantage comparativeadvantage:with lower opp.cost absoluteadvantage:produce more goods

4.economic system:

Command economy计划经济Marketeconomy市场经济

5.supply，demand

Determinants that can shift S or D

6.circular flow diagram

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Not included inGDP: 1. Intermediategoods 2. Non-production transactions

-Financial transactions(nothingproduced) -Usedgoods 3. Non-market(illegal)activities

ExpectedInflation:CPI

Inflationrate??

new??CPIold*100% CPIold

Realinterestrate=Nominalinterestrate-Inflationrate

CPI ??

price of basket at current periodof basket at baseperiod

*100

price

GDP NominalGDPRealGDP

*100

Deflator?M*V=P*Y

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D.TheMonetary System and MoneyMarket

Money: the set of assets in the economy that people regularly used to buy goods and servicesfrom eachother.

3 types ofmoney:

M0=currency(highliquidity)

M1=currency+checkabledeposit+traveler’scheck(mediumliquidity) M2(lowliquidity)

Liquidity: the ease with which an asset can be converted into cash.

MoneyMultiplier:M=1/R

THE MAXIMUM money multiplier is 1/RR because:

①Publicpreferholdingsomemoney②Bankskeepexcessreserveswilldecreasemoneysupply

Three tools of monetary policy: 1. Required ReserveRatio(R) ↓R→moneysupply↑ ↑R→moneysupply↓ 2. Open market operation(most used)[The Fed buys/sells governmentsecurities/bonds] buys→moneysupply↑sells→moneysupply↓ 3. Discount rate[The interest rate that the Fed charges commercialbanks] ↓discount rate→moneysupply↑ ↑discount rate→moneysupply↓

Federalfundsrate[Theinterestratethatbankschargeoneanotherforone-dayloansofreserves]

The value of fed fund rate equals equilibrium interest rate in monry market.

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The Demand ofMoney:

Quantityofmoneydemandedistheamountofmoneythathouseholdsandfirmschoosetohold. Nominalinterestrate=realinterestrate+inflationrate What Affects MoneyHoldings?

1.Price level: Price level rises more money is needed to make a given transaction→peopletendto increase their holding ofmoney→MD↑

?2.realincome/realoutput:Peoplehavemoreincometendtoholdmoremoneyasastoreofvalueandtocarryoutmoretransactionsusingmoney→MD↑

3.technology:improved technology(like credit card,ATM and etc.)→MD decreases

MoneyMarket:

Equilibrium in the MoneyMarket：

Loanable FundMarket:

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