A Note From the Author
About the Author
About Research & Education Association
Independent Study Schedules

Chapter 1
Excelling on the AP Economics Exams
About This Book
About the Advanced Placement Program
About the AP Economics Exams
AP Microeconomics Exam Distribution
AP Macroeconomics Exam Distribution
About Our Subject Review
Scoring the Official Exams
Studying for Your AP Exam
Test-Taking Tips
What You’ll Face on Test Day

Chapter 2
Basic Economic Concepts Review
Key Terms
Economic Foundations
Origins of Supply
Origins of Demand
Markets
Circular Flow Model

Chapter 3
AP Microeconomics
AP Microeconomics Course Structure
Microeconomics: Basic Economic Concepts
The Nature and Functions of Product Markets
Factor Markets
Efficiency, Equity, and the Role of Government
AP Microeconomics Review
Key Terms
Interaction of Supply and Demand
Price Elasticity of Demand
The Total Revenue Test
Cross Elasticity of Demand
Government Intervention in the Free Market
Price Elasticity of Supply
Consumer Choice
Income Constraints and Budget Limits
Producer Behavior
Opportunity (Economic) Cost
Producer Time Constraints
Short-Run Production Costs
Cost Analysis
Long-Run Production Costs
Four Production Market Models
Pricing and Employment ofFactor Markets
Marginal Resource Productivity Theory
The Labor Market and Wages
Income Inequality and Poverty
Taxation
Transfer Payments
Antidiscrimination Laws
Government Intervention
AP Microeconomics Review Questions
Answers to Review Questions
AP Microeconomics Exam
Practice Exam
Answer Key
Detailed Explanations of Answers

Chapter 4
AP Macroeconomics
AP Macroeconomics Course Structure
Macroeconomics: Basic Economic Concepts
Measurement of Economic Performance
National Income and Price Determination
Economic Growth
International Finance, Exchange Rates, and Balance of Payments
AP Macroeconomics Review
Key Terms
Measuring Economic Performance
Economic Performance over Time
Phillips Curve
Consumer Price Index
GDP Price Index
Personal Consumption Expenditure Index
Why Does the Type of Inflation Indicator Matter
Effects of Inflation
Types of Inflation
Building the Aggregate Expenditure Model
The Great Debate
Operating beyond the LRAS
Economic Growth and Productivity
Focus on Consumer Expenditure
Business Investment, Including Government,
and Net Exports to the AE Model (Injections and Leakages)
Focus on Ig and Disequilibrium
GDP and the Multiplier
Investment Demand, Nominal and Real Interest Rates,
and Loanable Funds
Aggregate Demand/Aggregate Supply Model
AD/AS and Fiscal Policy
Fiscal Policy Issues
Crowding Out
AD/AS and Monetary Policy
Money
Bonds
Stock Equities
The Federal Reserve and the Banking System
Types of Banks
Banks, Loans, and the Money Multiplier
The Fed and Monetary Policy
FOMC
Impact of the Global Economy
NAFTA and GATT
Comparative Advantage
Financing International Trade
Balance of Payments
Currency Exchange Rates

AP Macroeconomics Review Questions
Answers to Review Questions

AP Macroeconomics Exam
Practice Exam
Answer Key
Detailed Explanations of Answers

Appendices
Appendix A: Additional Section II Free-Response
Topics for Study
Appendix B: Key Economic Formulae
Glossary
Answer Sheets
Index