Aggregate supply and demand model
The core apparatus is the AS-AD model linking price levels to real output. Shifts in either curve explain inflation, recession, and the effect of policy shocks on equilibrium GDP.
AP Macroeconomics 2014-2015
3 ideas
Fiscal versus monetary levers
The text separates government spending and taxation (fiscal) from central-bank interest and money-supply tools (monetary). Each acts on aggregate demand through distinct channels and lags.
Key indicators: GDP, inflation, unemployment
It drills the definitions and measurement of national accounts, price indices, and labor statistics. Mastering how each is calculated is the exam's foundation for reasoning about the economy.