Correlations

Economics: Principles and Tools, 3rd Edition ©2003

Arthur O'Sullivan and Steven M. Sheffrin

Macroeconomics

Correlated to AP* Microeconomics, Macroeconomics, May 2002, May 2003

ST = Student textbook pages

1. Basic economic concepts
   1. Scarcity: the nature of economic systems
      ST: 2, 3
   2. Opportunity costs and production possibilities
      ST: 3–#8211;6, 24–#8211;27, 164–#8211;165, 465, 554, 585, 662
   3. Specialization and comparative advantage
      ST: 44, 672
   4. The functions of any economic system (what, how, and for whom to produce)
      ST: 2, 7–#8211;9, 9–#8211;10, 44–#8211;45, 47–#8211;49, 58
   5. Demand, supply, price determination
      ST: 63–#8211;94, 163–#8211;185
   
   
2. Measurement of economic performance
   1. Gross national product, gross domestic product, and national income concepts
      ST: 417–#8211;435, 527–#8211;529
   2. Inflation and price indices
      ST: 10, 446–#8211;448, 629–#8211;634, 644–#8211;646, 659–#8211;661
   3. Unemployment
      ST: 10, 12, 437–#8211;443, 504, 632–#8211;635, 643–#8211;644
   
   
3. National income and price determination
   1. Aggregate supply
      1. Short-run and long-run analyses
         ST: 510–#8211;513, 515–#8211;516
      2. Sticky versus flexible wages and prices
         ST: 506–#8211;508
      3. Supply-side policies
         ST: 454, 537
   2. Aggregate demand
      1. Circular flow
         ST: 45–#8211;46, 419–#8211;421
      2. Components of aggregate demand
         ST: 501–#8211;505, 509–#8211;510
      3. Multiplier
         ST: 525–#8211;542, 547–#8211;551
      4. Fiscal policy
         ST: 521–#8211;545
      5. Monetary policy
         ST: 591–#8211;610
   3. Money and banking
      1. Definition of money and its creation
         ST: 571–#8211;580
      2. Tools of central banking policy
         ST: 580–#8211;587
   4. Fiscal-monetary mix
      1. Interaction of fiscal and monetary policies
         ST: 595–#8211;607
      2. Government budget policies
         ST: 603–#8211;608, 616–#8211;618, 622–#8211;624
   5. Trade-offs between inflation and unemployment
      1. Long run versus short run
         ST: 515–#8211;516, 611–#8211;612, 632–#8211;647
      2. Supply shocks
         ST: 513–#8211;514
      3. Role of expectations
         ST: 629–#8211;636
   
   
4. Economic Growth
   ST: 421, 476–#8211;478, 480–#8211;484, 487–#8211;488, 489–#8211;492
   
   
5. International finance, exchange rates, and balance of payments
   1. International trade and policy
      ST: 669–#8211;690
   2. International finance, exchange rates, and balance of payments
      ST: 50–#8211;52, 691–#8211;711