Correlations

Principles of Economics, 6th Edition ©2002

Karl E. Case and Ray C. Fair

Macroeconomics

Correlated with AP* Macroeconomics, May 2002, May 2003

ST = Student textbook pages

1. Basic Economic Concepts
   1. Scarcity: the nature of economic systems
      ST: 26–27, 27–28
   2. Opportunity costs and production possibilities
      ST: 2–3, 27, 31, 32–34, 107–108, 110
   3. Specialization and comparative advantage: the basis for international trade
      ST: 28–29, 669
   4. The functions of any economic system (what, how, and for whom to produce)
      ST: 4–5, 36–38
   5. Demand, supply, price determination
      ST: 82–84, 385–386, 542
   
   
2. Measurement of economic performance
   1. Gross national product, gross domestic product, and national income concepts
      ST: 393–396, 396–400, 404–406
   2. Inflation and price indices
      ST: 379, 424–428, 557–562, 655
   3. Unemployment
      ST: 352–353, 379–380, 417, 420–421, 422–424, 568, 571–573
   
   
3. National income and price determination
   1. Aggregate supply
      1. Short-run and long-run analysis
         ST: 139, 183–184, 548–552
      2. Sticky versus flexible wages and prices
         ST: 376
      3. Supply-side policies
         ST: 381
   2. Aggregate demand
      1. Circular flow
         ST: 381–382
      2. Components of aggregate demand
         ST: 385–386, 545
      3. Multiplier
         ST: 445–450, 453–454, 464–466, 475–476, 528–529
      4. Fiscal policy
         ST: 380, 455–478
      5. Monetary policy
         ST: 380, 456, 505, 554–556
   3. Money and banking
      1. Definition of money and its creation
         ST: 480, 483–489
      2. Tools of central banking policy
         ST: 486–490, 494–499
   4. Fiscal-monetary mix
      1. Interaction of fiscal and monetary policies
         ST: 461–464, 516
      2. Government budget policies
         ST: 466–467, 470–472
   5. Trade-offs between inflation and unemployment
      1. Long run versus short run
         ST: 573–575, 575–579, 580
      2. Supply shocks
         ST: 550–552
      3. Role of expectations
         ST: 571, 582
   
   
4. Economic Growth
   ST: 380
   
   
5. International finance, exchange rates, and balance of payments
   1. International trade and policy
      ST: 667–675, 677–678, 681–686
   2. International finance, exchange rates, and balance of payments
      ST: 691–695, 696–703