| Steven M. Reff Economics Lecturer University of Arizona (2007 - 2016) The 2015 University of Arizona Five-Star Faculty Award |
| CLEP® Principles of Macroeconomics Course Preparation |
NOTE: This website is not a College Board® sponsored website. Everything on this
website can be used by teachers or students to get a better understanding of their
college-level Principles of Macroeconomics course.
website can be used by teachers or students to get a better understanding of their
college-level Principles of Macroeconomics course.
| Unit 1: Basic Economic Concepts (12%–15%) |
| Unit 2: Measurements of Economics Performance (12%–16%) |
| Unit 3: National Income and Price Determination (15%–20%) |
| Unit 4: Financial Sector (15%–20%) |
| Unit 5: Inflation, Unemployment, and Stabilization Policies (20%–25%) |
| Unit 6: Economic Growth and Productivity (5%–10%) |
Basic Economic Concepts (12%–15%)
• Topic 1.1 Scarcity, choice, and opportunity costs
• Topic 1.2 Production possibilities curve
• Topic 1.3 Absolute advantage, comparative advantage, specialization, and trade
• Topic 1.4 Demand, supply, and market equilibrium
• Topic 1.5 Determinants of supply and demand
• Topic 1.6 Price controls (price ceilings, price floors, and tariffs)
• Topic 1.1 Scarcity, choice, and opportunity costs
• Topic 1.2 Production possibilities curve
• Topic 1.3 Absolute advantage, comparative advantage, specialization, and trade
• Topic 1.4 Demand, supply, and market equilibrium
• Topic 1.5 Determinants of supply and demand
• Topic 1.6 Price controls (price ceilings, price floors, and tariffs)
| Units Below Will Be Posted by early August 2024 (Keep Refreshing Your Browser Window) |
| Unit 7: Open Economy: International Finance (5%-10%) |
Measurement of Economic Performance (12%–16%)
• Topic 2.1 Circular Flow, National Income Accounts, and
the Business Cycle
• Topic 2.2 Gross Domestic Product
• Components
• Real vs. Nominal GDP
• Topic 2.3 Inflation
• Measurement and Adjustment
• Price Indices
• Cost of Inflation
• Nominal vs. Real Values
• Demand-Pull vs. Cost Push Inflation
• Topic 2.4 Unemployment
• Definition and Measurement
• Types of Unemployment
• Natural Rate of Unemployment
• Topic 2.1 Circular Flow, National Income Accounts, and
the Business Cycle
• Topic 2.2 Gross Domestic Product
• Components
• Real vs. Nominal GDP
• Topic 2.3 Inflation
• Measurement and Adjustment
• Price Indices
• Cost of Inflation
• Nominal vs. Real Values
• Demand-Pull vs. Cost Push Inflation
• Topic 2.4 Unemployment
• Definition and Measurement
• Types of Unemployment
• Natural Rate of Unemployment
Measurement of Economic Performance (12%–16%)
• Topic 3.1 Aggregate Supply
• Determinants of aggregate supply
• Short-run and long-run analyses
• Sticky versus flexible wages and prices
• Macroeconomic equilibrium
• Topic 3.2 Aggregate Demand
• Determinants of aggregate demand
• Topic 3.2 Multiplier and Crowding-Out Effects
• Topic 3.4 Real Output and Price Level
• Short and long run
• Actual versus full-employment output
• Topic 3.1 Aggregate Supply
• Determinants of aggregate supply
• Short-run and long-run analyses
• Sticky versus flexible wages and prices
• Macroeconomic equilibrium
• Topic 3.2 Aggregate Demand
• Determinants of aggregate demand
• Topic 3.2 Multiplier and Crowding-Out Effects
• Topic 3.4 Real Output and Price Level
• Short and long run
• Actual versus full-employment output
Financial Sector (15%–20%)
Money, banking, and financial markets
Definition of financial assets: money, stocks, and bonds
Time value of money (present and future value)
Measures of money supply
Banks and creation of money
Money demand
Money market
Loanable funds market
Central bank and control of the money supply
Tools of central bank policy
Quantity theory of money
Real versus nominal interest rates
Money, banking, and financial markets
Definition of financial assets: money, stocks, and bonds
Time value of money (present and future value)
Measures of money supply
Banks and creation of money
Money demand
Money market
Loanable funds market
Central bank and control of the money supply
Tools of central bank policy
Quantity theory of money
Real versus nominal interest rates
Inflation, Unemployment, and Stabilization Policies (20%–25%)
Fiscal and monetary policies
Demand-side effects
Supply-side effects
Policy mix
Government deficits and debt
Inflation and unemployment
The Phillips curve: short run versus long run
Role of expectations
Fiscal and monetary policies
Demand-side effects
Supply-side effects
Policy mix
Government deficits and debt
Inflation and unemployment
The Phillips curve: short run versus long run
Role of expectations
Economic Growth and Productivity (5%–10%)
Definition and measurement of economic growth
Investment in human capital
Investment in physical capital
Research and development and technological progress
Growth policy
Definition and measurement of economic growth
Investment in human capital
Investment in physical capital
Research and development and technological progress
Growth policy
Open Economy: International Finance (5%-10%)
Balance of payments accounts
Balance of trade
Current account
Financial account (formerly called capital account)
Foreign exchange market
Demand for and supply of foreign exchange
Exchange rate determination
Currency appreciation and depreciation
Exchange rate policies
Inflows, outflows and restrictions
Net exports and capital flows
Balance of payments accounts
Balance of trade
Current account
Financial account (formerly called capital account)
Foreign exchange market
Demand for and supply of foreign exchange
Exchange rate determination
Currency appreciation and depreciation
Exchange rate policies
Inflows, outflows and restrictions
Net exports and capital flows
| Posted by August 20, 2024 |
| Posted by August 20, 2024 |
| Posted by August 27, 2024 |
| Posted by August 27, 2024 |