Get the easy questions right!

6 Key Graphs for FRQs

1. Production Possibilities
2. Aggregate Demand and Supply
3. Phillips Curve
4. Money Market
5. Loanable Funds
6. Foreign Exchange

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FRQ break down
 12 Key Skills for FRQs
1. Identify comparative advantage
2. Calculate terms of trade
3. Calculate GDP and GDP Deflator
4. Identify who is helped and hurt by inflation
5. Use the shifters of aggregate demand and supply
6. Calculate and use spending multiplier
7. Explain how economy adjusts in the long run
8. Read bank balance sheet
9. Calculate and use money multiplier
10. Explain open market operations
11. Explain how exchange rates effect net exports
12. Categorize a transaction on balance of payments
 Macro is all about relationship!
1. ↑Interest Rates → Investment ___
2. ↑Taxes → Disposable Income ___
3. ↑Government Spending → National Income ___
4. ↑Marginal Propensity Consume→ S Multiplier ___
5. ↑Capital Stock → Growth ___
6. ↑Inflation → REAL Wages ___
7. ↑Inflation → REAL Interest Rates ___
8. ↑Deficit Spending → Interest Rates ___
9. ↑Money Supply→ Interest Rates ___
10. ↑Reserve Requirement → Money Supply ___
11. ↑Discount Rate → Money Supply ___
12. ↑FED Buys Bonds → Money Supply ___
13. ↑International Value of Dollar → US Net Exports ___
14. ↑Interest Rates → Net Capital Inflow ___
15. ↑Interest Rates → Bond Prices ___
 Macro is all about relationship!
1. ↑Interest Rates → Investment ↓
2. ↑Taxes → Disposable Income ↓
3. ↑Government Spending → National Income ↑
4. ↑Marginal Propensity Consume→ S Multiplier ↑
5. ↑Capital Stock → Growth ↑
6. ↑Inflation → REAL Wages ↓
7. ↑Inflation → REAL Interest Rates ↓
8. ↑Deficit Spending → Interest Rates ↑
9. ↑Money Supply→ Interest Rates ↓
10. ↑Reserve Requirement → Money Supply ↓
11. ↑Discount Rate → Money Supply ↓
12. ↑FED Buys Bonds → Money Supply ↑
13. ↑International Value of Dollar → US Net Exports ↓
14. ↑Interest Rates → Net Capital Inflow ↑
15. ↑Interest Rates → Bond Prices ↓
 Extra Vocab
1. Capital Stock
2. Stagflation
3. Supply Shock
4. Autonomous Consumption
5. Crowding Out
6. Velocity of Money
7. Demand Deposits
8. Excess Reserves
9. Federal Funds Rate
10.Leakages
11.Fiat Money
12.Foreign Direct Investment
13.Infrastructure