Principles of Macroeconomics for AP® 2e – Enhanced with Econblox Videos

The comprehensive contents from this book, combined with Odigia’s teaching and learning tools, and the professionally produced Econblox© Video Series, has everything you need to engage, collaborate, track, and assess your students.

This course includes:

170 +

Econblox Videos


practice questions


engagement activities


assessment questions

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Principles of Macroeconomics 2e for AP ® Course Outline

How does economics apply to the real world?

Concepts Covered:



  • What is economics and why is it important?
  • What are the differences between microeconomics and macroeconomics?
  • How do economists use theories and models to understand economic issues?
  • How are economies organized?
  • Includes the following Econblox videos:
    • How to Plot a Line
    • Measuring Slopes
    • Different Types of Slopes
    • Intersection of Two Lines
    • Curved Line: Slopes and Tangents
    • Dividing by Fractions
    • Compound Interest
    • Present and Future Values of Money
    • Calculating the Roof Costs Using Present Values
    • Rational Economic Exchange
    • Circular Flow of Income

How do the choices we make affect us?

Concepts Covered:



  • How should individuals make choices based on their budget?
  • What is a production possibilities frontier relate to social choices?
  • How do we confront objections with an economic approach?
  • Includes the following Econblox videos:
    • Opportunity Cost Versus Choice
    • Definition of Economics and Opportunity Cost
    • Corporate Spending Choices
    • Government Spending Choices
    • Production Possibility Curve
    • Production Possibilities Frontier
    • Selfish vs. Self-Interest
    • Characteristics of Proposals

How does demand affect supply?

Concepts Covered:



  • How does demand, supply, and equilibrium relate markets for goods and services?
  • How does good and services shift demand and supply?
  • What is the four-step process for changes in equilibrium, price, and quantity?
  • What is the difference between price ceilings and price floors?
  • How do supply and demand act as a social mechanism?
  • Includes the following Econblox videos:
    • Compilation – Demand Curve
    • Movement Along the Demand Curve – Quantity Demanded Decrease
    • Movement Along the Demand Curve – Quantity Demanded Increase
    • Law of Demand
    • Change in Demand – Increase
    • Change in Demand – Decrease
    • Compilation – Supply Curve
    • Moving Along the Supply Curve
    • Law of Supply
    • Increase in Supply
    • Decrease in Supply
    • Increase or Decrease in Demand
    • Number of Buyers Increases Demand
    • Expectations Can Shift Demand
    • Variables Shift Supply Curves – Input Prices
    • Variables Shift Supply Curves – Technology
    • Giffen Goods: Main Video
    • Giffen Goods: Key Concept
    • Compilation – Market Equilibrium
    • Price As Control
    • Increase or Decrease in Demand
    • Increase or Decrease in Supply
    • Demand Increase, Supply Increase
    • Demand Decrease, Supply Decrease
    • Demand Decrease, Supply Increase
    • Demand Increase, Supply Decrease
    • Opportunity Cost – Green Space
    • Price Controls
    • Price Floor
    • Disequilibrium Pricing: Main Video
    • Disequilibrium Pricing: Key Concept
    • Producer Surplus Consumer Surplus
    • Consumer Surplus, Producer Surplus
    • Consumer Surplus – Western Omelet
    • Price Discrimination: Main Video
    • Price Discrimination: Key Concept
    • Price Discrimination – Elasticity: Main Video
    • Price Discrimination – Elasticity: Key Concept

Why are labor and financial market important?

Concepts Covered:



  • How is demand and supply incorporated in labor markets?
  • How is demand and supply incorporated in financial market?
  • How is the market system an efficient mechanism for information?

What is the macroeconomic perspective?

Concepts Covered:



  • How can the size of the economy be measured?
  • How are nominal values adjusted to real values?
  • How is the real GDP tracked over time?
  • How comparable is GDP among other countries?
  • How does GDP measure the well-being of society?
  • Includes the following Econblox videos:
    • Calculating GDP
    • Size of the U.S. GDP
    • Two Methods for Calculating GDP
    • GDP Formula Y= C + I +G + Nx
    • Calculating GDP – Value Added Method
    • How Housing Contributes to GDP
    • GDP vs. GNP
    • Unreported Activity and GDP
    • Benefits of Allowing Cross-border Trade
    • Capital Stock and Flow Variables
    • Capital and Physics Capital 
    • Calculating Net Investment
    • Stock and Flow Variables – Bathtub analogy
    • How Investment Increases GDP
    • Saving and Investment
    • How Investment and Saving work
    • Connecting Saving and Investment
    • Nominal Vs. Real Quantities
    • Comparing Years
    • Comparing Movie Box Office Takes 

How is economic growth measured?

Concepts Covered:



  • How did economic growth happen?
  • How does labor productivity apply to economic growth?
  • What  components make up economic growth?
  • What is economic convergence?

Why does unemployment happen?

Concepts Covered:



  • How is the unemployment rate defined and computed?
  • What are the patterns of unemployment?
  • What causes change in unemployment over the short run?
  • What causes change in unemployment over the long run?
  • Includes the following Econblox videos:
    • Population: Employment and Unemployment
    • Calculating the Size and Composition of the Civilian Labor Force
    • Calculating Labor Participation Rate
    • Calculating the Unemployment Rate
    • Real GDP and Unemployment
    • Unemployment and the Recessionary Gap
    • Three Types of Unemployment
    • Unemployment Formula
    • Cycilcal Unemployment in a Recessionary Gap

What is inflation?

Concepts Covered:



  • How is inflation tracked?
  • How can we measure changes in the cost of living?
  • How do the U.S. and other countries experience inflation?
  • Why is there confusion over inflation?
  • What is indexing, and what are its limitations?
  • Includes the following Econblox videos:
    • GDP Deflator vs. CPI
    • GDP Deflator and the CPI
    • How to Calculate the CPI
    • Using the CPI to Compare Prices
    • Key Concept – Calculate the GDP Deflator
    • Comparing the GDP to CPI
    • Interest Rates vs. Bond Prices
    • Three Motives for Holding Money
    • Opportunity Cost and Low Interest Rates
    • Why Interest Rates and Bond Prices Change

What does international trade relate to capital flows?

Concepts Covered:



  • How are trade balances measured?
  • How are trade balances interpreted in historical and international contexts?
  • How do trade balances related affect the flows of financial capital?
  • How does the national saving relate to investment identity?
  • What are the pros and cons of trade deficits and surpluses?
  • What is the difference between level of trade and the trade balance?

What is the aggregate demand/aggregate supply model?

Concepts Covered:



  • What are macroeconomic perspectives on demand and supply?
  • How do you build a model of aggregate demand and aggregate supply?
  • What types of things shift aggregate supply?
  • What types of things shift aggregate demand?
  • How does the AD/AS model incorporate growth, unemployment, and inflation?
  • What is the difference in the AD/AS model between Keynes’ law and Say’s law?

What is the Keynesian Perspective?

Concepts Covered:



  • How is aggregate demand affected in Keynesian Analysis?
  • What are the building blocks of Keynesian Analysis?
  • What is the expenditure-output (Or Keynesian cross) model?
  • What is the Phillips Curve?
  • How does Keynesian perspective affect market forces?
  • Includes the following Econblox videos:
    • Circular Flow of Income
    • Four-Sector Model Resources and Markets
    • Four-Sector Model Productive Saving
    • Four-Sector Model Government Spending
    • Four-Sector Model International Trade
    • Four-Sector Model Productive Uses of Outflows
    • Inflationary Gap Without Government Intervention
    • How an Inflationary Gap Develops
    • Spending Multiplier
    • Definition of Spending Multiplies Calculate the Marginal Propensity to Consume
    • How Money Spent Ripples Through the Economy
    • Calculate the Spending Multiplier

What is the Neoclassical Perspective?

Concepts Covered:



  • What are the building blocks of Neoclassical Analysis?
  • What are the policy implications of the Neoclassical Perspective?
  • How do we balance Keynesian and Neoclassical models?

How does money and banking go hand-in-hand?

Concepts Covered:



  • What functions does money offer?
  • How is money measured in currency, M1, and M2?
  • What is the role of banks?
  • How do banks create money?
  • Includes the following Econblox videos:
    • Fractional Reserve Banking
    • T-accounts
    • Money Creation Through Fractional Reserve Banking
    • Money Supply and the Money Multiplier 
    • Assumption Underlying the Money Multiplier Example
    • How the System Creates Money
    • Simple Money Multiplier Definition
    • Recap of Assumptions
    • The U.S. Money Multiplier

What is the difference between monetary policy and bank regulation?

Concepts Covered:



  • How does the federal reserve banking system affect central banks?
  • How are banks regulated?
  • How does a central bank execute monetary policy?
  • How does monetary policy affect economic outcomes?
  • What are the pitfalls for monetary policy?
  • Includes the following Econblox videos:
    • Money Supply
    • Money Supply Definition
    • Open Market Operations – Increasing the Money Supply
    • Monetary Policy
    • Three Ways the Red Controls Monetary Policy
    • How Quantitative Easing is Implemented 
    • How Monetary Policy Effect Economies 
    • Effect of Lower Interest Rates
    • Interest Rates Affect International Money Flow
    • Lower Interest Rates Increase Asset Prices
    • Money Demand
    • What is Money Demand 
    • two Types of Assets
    • Opportunity Cost of Holding Money
    • Show Leather Costs
    • Money Demand Curve Shifts
    • Money Demand Curve Summary

Is there a major difference between exchange rates and international capital flows?

Concepts Covered:



  • How does the foreign exchange market work?
  • How does demand and supply shift in foreign exchange markets?
  • What type of macroeconomic effects take place in exchange rates?
  • What are some types of exchange rate policies?
  • Includes the following Econblox videos:
    • Currency Exchange Rates
    • Equilibrium at Intersection of Supply and Demand
    • Effect of Interest Rates on Currency Exchange Rates
    • Government Spending Affects Exchange Rates
    • Fixed Exchange Rates

How do government budgets affect fiscal policy?

Concepts Covered:



  • What does government spending cover?
  • What is taxation?
  • How does federal deficits affect the national debt?
  • How can fiscal policy be used to fight recession, unemployment, and inflation?
  • What are automatic stabilizers?
  • What are the practical problems with discretionary fiscal policy?
  • What is the question of a balanced budget?
  • Includes the following Econblox videos:
    • Fiscal Policy – Government Spending
    • Effect of Government Spending
    • Finding the Optimum Spending Level
    • How Wise Government Spending Helps
    • Tex Multiplier
    • How Tax Reduction Ripples Through the Economy
    • Calculate the Simple Tax Multiplier 
    • Multiplier Effect Dependent Upon Income
    • Fiscal Policy – Taxation
    • Reducing Government Spending to Reduce Inflation
    • Increasing Taxes to reduce Inflation
    • Finding the Right Balance of Taxation
    • Effect of Reducing Taxes
    • Unintended Effect of Temporary Tax Relief
    • Fiscal Deficit vs. Debt
    • How a Fiscal Deficit or Surplus is Created
    • Definition of Fiscal Debt
    • How Fiscal Deficits Increase Fiscal Debt
    • How Much Government Debt Can We Afford?
    • Population Pyramids
    • Building the Population Pyramid
    • Population Pyramid Changes 1945 to 2065
    • Population Pyramid Changes 1965 to 2015
    • Solutions to the Population Pyramid
    • Population Pyramid 1945 to 2010
    • Solutions to the Population Pyramid Problem

What are the impact of government borrowing?

Concepts Covered:



  • How does government borrowing affect investment and the trade balance?
  • What is the relationship between fiscal policy, investment, and economic growth?
  • How does government borrowing affect private saving?
  • How does fiscal policy affect the trade balance?

What are some macroeconomic policies around the world?

Concepts Covered:



  • How diverse is the economy around the world??
  • How are countries’ improving their standards of living?
  • What are the causes of unemployment around the world?
  • What are the causes of inflation across the world?
  • How are trade concerns balanced?

Professionally-produced Econblox Videos

About the videos

Principles of Macroeconomics 2e for AP© – Econblox 

200+ short Econblox videos supercharge The Principles of Macroeconomics 2e for AP course, energizing students with the theory and practical application of introductory economics. It’s simple to use these mobile-optimized, HD videos, animations and quizzes. Already embedded in the course, these essential visual learning tools improve student preparation and will make them smile. Responsive multiple-choice quizzes make it easy to measure progress. Closed-captioned videos improve student accessibility.

About the creators:


Jay Moulton, PEng, MBA, Harvard Business School
Louise Kierans, BA Economics, McGill University

Contributing Economists

Jodi Beggs, PhD, Harvard University Greg Brock, PhD, Georgia Southern University Joe Calhoun, PhD, Florida State University Alejandro Cañadas, PhD, Mount Saint Mary’s University Marilyn Cottrell, Brock University Karl Einolf, PhD, Indiana Tech Tawni Ferrarini, PhD, Lindenwood University Shelby Frost, PhD, Georgia State University Shailendra Gajanan, PhD, University of Pittsburgh David Gray, PhD, University of Ottawa Alan Hochstein, PhD, Concordia University Mark Leclair, PhD, Fairfield University Bridget O’Shaughnessy, PhD, McMaster University Christopher Ruebeck, PhD, Lafayette College Eesha Sen Choudhury, PhD, McGill University Robert Sonora, PhD, Fort Lewis College Noreen Templin, Ed.D., Butler Community College Tamara Woroby, PhD, Towson University

About the book

Principles of Macroeconomics for AP® 2e

Principles of Macroeconomics for AP® Courses 2e covers the scope and sequence requirements for an Advanced Placement® macroeconomics course and is listed on the College Board’s AP® example textbook list. The second edition includes many current examples and recent data from FRED (Federal Reserve Economic Data), which are presented in a politically equitable way. The outcome is a balanced approach to the theory and application of economics concepts.

The second edition was developed with significant feedback from current users. In nearly all chapters, it follows the same basic structure of the first edition. General descriptions of the edits are provided in the preface, and a chapter-by-chapter transition guide is available for instructors.

About the authors:

Senior Contributing Authors

Steven A. Greenlaw, University of Mary Washington
Timothy Taylor,
Macalester College

Contributing Authors

Eric Dodge, Hanover College
Cynthia Gamez, University of Texas at El Paso
Ralph Sonenshine, American University
Andres Jauregui, Columbus State University
Diane Keenan, Cerritos College
Dan MacDonald, California State University San Bernardino
Amyaz Moledina, The College of Wooster
Craig Richardson, Winston-Salem State University
David Shapiro, Pennsylvania State University

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