AP Macroeconomics

<p>Luckily, my AP Gov/Macroeconomics teacher is fantastic, I'm not preparing at all, and still expecting a 5.</p>

<p>Can someone explain the whole foreign exchange process where value of currency in 1 country appreciates/depreciates, interest rates, and exports/imports are connected? Its the only topic I dont really understand about how it works.</p>

<p>For the loanable funds graph, is the vertical axis nominal interest rate or real interest rate? I know for the money supply graph, it's nominal interest rate.</p>

<p>It's real interest rate.</p>

<p>A clue for that, a lot of times in the FRQ they'll tell you to draw the graph, but make sure you look down in the next part because if they ask you to shift something they might say "indicate the change in the real interest rate." Sometimes the question can let you know what to put on each axis.</p>

<p>can someone explain to me the loanable funds market and what causes the two curves to shift and in what direction?</p>

<p>and can someone elaborate on the philips curve?</p>

<p>both of these graphs are not in my textbook =&lt;/p>

<p>Can someone post up the qualities of different economic theories--e.g. supply-side, monetarist, Keynesian, classical, etc?</p>

<p>yo any of you taking Macro Late here? I m taking it late and need somebody to review with a little lol</p>

<p>dfall: The loanable funds market basically describes what funds are available for banks to loan out. So, for instance, if people decide to save more, the loanable funds SUPPLY curve will shift to the right because more money is kept in the banks, which can be loaned out to other people. Is that a little better?
Also, the Phillips tradeoff describes the inverse relationship between unemployment and inflation. When unemployment is low, inflation is high, and vice versa. You can actually see this just by moving the AD curve: if AD shifts right, output increases (meaning that unemployment decreases) and price level (inflation) increases. Here is a graph:

<a href="http://plus.maths.org/latestnews/sep-dec06/nobel06/Phillips.gif%5B/img%5D"&gt;http://plus.maths.org/latestnews/sep-dec06/nobel06/Phillips.gif

</a>
The phillips curve is a vertical line in the long run.</p>

<p>@tlesc01 I dont understand why there's no trade-off in long run. Can you please explain to me?thanks=]</p>

<p>Can someone try and explain the balance of payments? Please?</p>

<p>Are all of the frqs weighted the same, even though the first one is longer than the others?</p>

<p>the first frq is worth 50% of the free response section and the last two questions are each worth 25% of the free response section.</p>

<p>Man, I studied my butt of for both micro and macro. I better pass.</p>

<p>Does it matter if we make curves on graphs accurate, or can we just use solid lines? For example, on an SRAS curve, do we need to show all the ranges or just a line with a constant slope?</p>

<p>I've looked at plenty of FRQ samples and the responses/scoring guidelines vary. I just want to make sure that a requirement wasn't implemented that requires exact curves on graphs...</p>

<p>I just read over PR completely and I don't plan on looking through Barron's tonight...is that fine? (just for macro; I read both for micro)</p>

<p>ANOTHER RED BULLLL SESSION :D:D:D:D:D:D</p>

<p>LesleyG: actually I have no idea. i'd never heard of a long run phillips curve until I did one of the FRQ from a while ago on college board. I wouldn't worry about it, just know the regular one.</p>

<p>question: which review books are best for macro?</p>

<p>thanks</p>

<p>Kaplan's, in conjunction with Princeton Review.</p>

<p>Kaplan gives a good overview, but some of it doesn't go into enough detail. Princeton Review fills in the holes, and provides GREAT practice tests. However, it's topic review can be a bit obtuse. Get both.</p>

<p>I don't know, the questions on PR didn't really match the test really well. Unfortunately, I've bought over 8 of their books by now.</p>