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Advanced Placement (AP) Macroeconomics (also known as AP Macro and AP Macroecon) is an Advanced Placement macroeconomics course for high school students that culminates in an exam offered by the College Board.
This equation is a rearrangement of the definition of velocity: :=. As such, without the introduction of any assumptions, it is a tautology . The quantity theory of money adds assumptions about the money supply, the price level, and the effect of interest rates on velocity to create a theory about the causes of inflation and the effects of ...
The equation for the aggregate supply curve in general terms may be written as Y = Y s ( W / P , P / P e , Z 2 ) {\displaystyle Y=Y^{s}(W/P,\ \ P/P^{e},\ \ Z_{2})} , where W is the nominal wage rate (exogenous due to stickiness in the short run), P e is the anticipated (expected) price level, and Z 2 is a vector of exogenous variables that can ...
In the above equation, it is verifiable that CA will deteriorate as government expenditure exceeds the amount of tax is collected. One way to understand this process intuitively is by thinking through two different markets. First consider the Foreign Exchange market. At equilibrium the quantity supplied = the quantity demanded.
Advanced Placement (AP) Economics (also known as AP Econ) refers to two College Board Advanced Placement Program courses and exams addressing various aspects of the field of economics: AP Macroeconomics
In some economics textbooks, the supply-demand equilibrium in the markets for money and reserves is represented by a simple so-called money multiplier relationship between the monetary base of the central bank and the resulting money supply including commercial bank deposits. This is a short-hand simplification which disregards several other ...
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