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16:51

AP Macroeconomics Online Course Prof. Jibin Park

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  • Level Advanced
  • 27 Lessons (16hr : 51min)
  • 1,033 already enrolled!
  • Audio: English

Professor Jibin Park will help you ace the AP Macroeconomics exam by explaining economic ideas with clear explanations, real world examples, and breakdowns of complex graphs. This course is complete with a full-length sample AP exam full of insights and test-taking strategies Professor Park has learned as an AP grader for 7+ years.

Table of Contents

Section 1: Introduction
  Intro to Macroeconomics 43:55
   Intro 0:00 
   Lesson Overview 0:14 
   What is Economics? 1:33 
    The Study of How People Seek to Satisfy Their Needs and Wants by Making Choices 1:40 
    Scarcity 1:56 
   Four Factors of Production (Resources) 2:59 
    Land 3:40 
    Labor 3:53 
    Capital 4:06 
    Entrepreneurship 4:50 
   Needs vs. Wabts 5:10 
   Choice and Cost 11:24 
    Opportunity Cost 12:41 
    Trade-Off 13:20 
   Opportunity Cost Example 14:16 
   Positive Economics vs. Normative Economics 16:19 
    Positive Economics 16:40 
    Normative Economics 17:26 
   Is It Normative or Positive? 18:30 
   Marginal Analysis 20:54 
    Thinking at the Margin 21:03 
    All or Nothing Propositions 21:29 
    Whether or Not to Consume the Next Unit 22:01 
   Marginal Analysis Example 22:10 
   Production Possibilities Frontier 25:00 
    Graph 25:17 
    Efficiency 25:25 
    Underutilization 25:38 
    PPF Graphs 25:45 
    Guns or Butter Analogy 26:03 
   Increasing Opportunity Cost 27:48 
    Law of Increasing Opportunity Cost 27:54 
    Curve Will Be Concave 28:04 
    Example 28:08 
   Constant Opportunity Cost 33:45 
    Definition of Constant Opportunity Cost 34:07 
    Downward-Sloping Line 34:14 
    Example 34:17 
   Example 1 37:32 
   Example 2 39:12 
   Example 3 40:37 
   Example 4 42:11 
  Comparative Advantage & Trade 45:14
   Intro 0:00 
   Lesson Overview 0:07 
   Different Types of Economies 1:30 
    Market Economy 1:41 
    Command Economy 2:28 
    Mixed Economies 3:50 
   Absolute Advantage 4:38 
    Better In Producing a Particular Product 4:54 
    Example 5:03 
   Comparative Advantage 8:09 
    Lower Opportunity Cost in Producing a Particular Product 8:27 
    Example 8:52 
   Comparative Advantage and PPF Graph 14:30 
   Example 1 21:33 
   Example 2 25:57 
   Example 3 28:59 
   Example 4 30:17 
   Example 5 35:21 
   Example 6 40:37 
  Supply & Demand 48:05
   Intro 0:00 
   Lesson Overview 0:09 
   Supply and Demand 1:34 
    Supply and Demand Model 1:39 
    Demand Curve 2:19 
    Supply Curve 2:23 
    Set of Factors 2:33 
    Equilibrium Price and Quantity 2:55 
   Demand Schedule and Demand Curve 3:09 
    Market Demand Schedule 3:19 
    Market Demand Curve 3:42 
    Example 3:51 
   Shifts of the Demand Curve 8:03 
    Changes in the Prices of Related Goods 8:19 
    Changes in Income 12:43 
    Changes in Tastes 14:35 
    Changes in Expectations 15:47 
   Increase in Demand (Rightward Shift) 17:25 
   Decrease in Demand (Leftward Shift) 18:37 
   Supply Schedule and Supply Curve 19:45 
    Market Supply Schedule 19:57 
    Market Supply Curve 20:09 
    Example 20:15 
   Shifts of the Supply Curve 23:38 
    Changes in Input Prices 24:04 
    Changes in Technology 24:49 
    Changes in Expectations 25:38 
   Increase in Supply (Rightward Shift) 26:56 
   Decrease in Supply (Leftward Shift) 28:10 
   Supply, Demand, and Equilibrium 29:02 
    Equilibrium Price 29:14 
    Equilibrium Quantity 29:26 
    Equilibrium 29:32 
   Surplus and Shortage 30:58 
    Surplus 31:09 
    Shortage 31:17 
    Example 31:22 
   Example 1 34:50 
   Example 2 36:05 
   Example 3 38:09 
   Example 4 41:53 
   Example 5 45:09 
  Changes in Supply and Demand 30:07
   Intro 0:00 
   Lesson Overview 0:17 
   Shifts of the Demand or Supply Curve 1:34 
    Demand Shift to the Right 1:47 
    Demand Shift to the Left 2:04 
    Supply Shift to the Right 2:28 
    Supply Shift to the Left 2:42 
   Example 1 3:36 
   Example 2 5:46 
   Example 3 7:43 
   Example 4 9:37 
   Shifts of Both the Demand and Supply Curves 11:53 
    Demand and Supply Shift to the Right 13:24 
    Demand and Supply Shift to the Left 13:36 
    Supply Shift to the Left and Demand Shift to the Right 13:55 
    Supply Shift to the Right and Demand Shift to the Left 14:18 
   Example 5 17:13 
   Example 6 20:21 
   Example 7 22:44 
   Example 8 25:06 

Section 2: Measurements of Economic Performances
  Gross Domestic Product 50:25
   Intro 0:00 
   Lesson Overview 0:27 
   National Accounts 1:20 
    National Income and Product Accounts 1:21 
    Macroeconomist Equation 2:35 
   Circular Flow of the Economy 9:23 
    Household 11:52 
    Firms 12:16 
    Product Market 12:31 
    Factor Market 12:40 
   Expanded Circular Flow Diagram 22:26 
   GDP Explained 30:36 
    Gross Domestic Product 30:43 
    First Method of Calculating 34:01 
    Second Method 35:00 
    Third Method 35:34 
   Real vs. Nominal GDP 36:21 
    Nominal GDP 36:36 
    Real GDP 36:51 
    Which is a More Accurate Means of Measuring Economic Growth 38:04 
   Real GDP Example (2010 Base) 39:08 
   Real GDP Per Capita 47:36 
    Real GDP Per Capita 48:46 
    Imperfect Measure but Generally Best Measure of Standard of Living 49:59 
  Unemployment 43:39
   Intro 0:00 
   Lesson Overview 0:14 
   Am I Unemployed? 1:59 
   Unemployment Measures 4:43 
    Employed 4:46 
    Unemployed 5:20 
    Labor Force 5:53 
    Labor Force Participation 6:21 
    Unemployment Rate 6:39 
   Unemployment Example 7:56 
   Limitations of the Unemployment Rate 11:06 
    Unemployment Tends to Understand the Employment Situation 11:16 
    Marginally Attached to Labor Force 11:32 
    Discouraged Worker 12:20 
    Underemployed 13:17 
   Types of Unemployment 14:37 
    Frictional Unemployment 14:45 
    Structural Unemployment 16:06 
    Cyclical Unemployment 17:00 
   Effect of Minimum Wage of Labor Market 19:00 
   Natural Unemployment Rate 22:36 
    Natural Unemployment 22:13 
    Actual Unemployment 23:47 
    Full Employment 24:06 
   Unemployment Examples 25:54 
   US Unemployment Data 26:16 
    Unemployment Rate Declined in November 2013 26:59 
    Civilian Labor Force Rose 28:47 
    Return of Furloughed Federal Government Worker 29:10 
    2.1 Million Marginally Attached to the Labor Force Went Down 29:44 
    Reasons to Not Join Labor Force 30:50 
    Average Workweek Increased 31:17 
    Average Hourly Earnings Increased 31:48 
   Trends in US Unemployment 32:20 
   Unemployment Rate Example 34:29 
  Inflation 28:44
   Intro 0:00 
   Lesson Overview 0:09 
   What is Inflation? 1:11 
    Purchasing Power of Your Money Decreases 1:16 
    All Prices Increase 1:46 
    Fed Chairman Paul Volcke's Top Priority 2:14 
    Target Federal Funds Rate 2:52 
    What's Wrong with Inflation 3:37 
   Costs of Inflation 3:48 
    Shoe-Leather Costs 3:57 
    Menu Costs 4:49 
    Unit-of-Account Costs 5:55 
   Crucifying Mankind on a Cross of Gold 6:32 
   Winners and Losers from Inflation 8:16 
    Nominal Interest Rate 8:21 
    Real Interest Rate 9:10 
   Real Interest Rate Examples 11:26 
   Wage-Price Spiral 14:29 
    Combination of 'Cost-Push' and 'Demand-Pull' Inflation 14:33 
    Demand-Pull Inflation 14:41 
    Wage-Price Spiral 15:13 
    Keynesians Tend to Favor This Model of How Inflation Works 16:10 
   Monetarist View of Inflation 17:04 
    Issue of Money Supply 17:13 
    Quantity Theory of Money 17:28 
    Austrian View 17:53 
    Paul Krugman's View 18:47 
   Measurement and Calculation of Inflation 19:37 
    Aggregate Price Level 19:41 
    Market Basket 19:48 
    Price Index 20:02 
   Consumer Price Index and PPI 21:51 
    Consumer Price Index 21:58 
    Producer Price Index 23:59 
   GDP Deflator 24:35 
    GDP Deflator Equation 24:36 
    Shows How Much the Aggregate Price Level Has Increased 24:55 
    Not Based on a Fixed Basket of Good's and Services 25:05 
    Default Basket 25:24 
   Price Index Problems 25:54 

Section 3: National Income and Price Determination
  Aggregate Demand 30:20
   Intro 0:00 
   Lesson Overview 0:07 
   What is Aggregate Demand 1:29 
    Aggregate Demand Curve 1:34 
    All Things Equal 2:10 
    Basic Equation of National Income Accounting 2:35 
   Aggregate Demand Curve 3:54 
   Why is the AD Downward Sloping? 6:36 
    Demand Curve for an Individual Good 6:56 
    Aggregate Demand 7:32 
    Why Does a Rise in Aggregate Price Level Lead to a Fall in the Quantity of All Domestically Produced Goods? 8:00 
   The Wealth and Interest Rate Effect 8:25 
    Wealth Effect 8:34 
    Interest Rate Effect 9:47 
   Shifts in the Aggregate Demand Curve 11:01 
    Changes in Expectations 11:30 
    Changes in Wealth 12:47 
    Sixe of the Existing Stock of Physical Capital 13:34 
   Monetary and Fiscal Policy 14:13 
    Fiscal Policy 14:26 
    Monetary Policy 16:32 
   Example 1 20:27 
   Example 2 21:52 
   Example 3 24:20 
   Example 4 26:06 
  Aggregate Supply 24:03
   Intro 0:00 
   Lesson Overview 0:12 
   What is Short-Run Aggregate Supply? 1:11 
    Shows the Relationship 1:17 
    Profit Per Unit of Output 1:41 
   Aggregate Supply Curve 2:35 
   Nominal Wages and Sticky Wages 4:05 
    Largest Source of Inflexible Production Cost 4:11 
    Nominal Wages Paid to Workers 5:09 
    Sticky Wages 5:48 
    Slow to Fall in Unemployment 6:04 
   Shifts in the Aggregate Supply Curve 9:33 
    Changes in Commodity Prices 10:15 
    Changes in Nominal Wages 10:45 
    Changes in Productivity 11:29 
   Long-Run Aggregate Supply Curve 12:24 
    Shows the Relationship 12:30 
    Potential Output 12:47 
    What Would Shift the LRAS? 13:57 
   Example 1 15:10 
   Example 2 18:11 
   Example 3 20:37 
   Example 4 21:41 
  Aggregate Supply & Demand 43:41
   Intro 0:00 
   Lesson Overview 0:11 
   Long-Run Macroeconomic Equilibrium 1:06 
   The AD-AS Model 3:29 
    Short-Run Macroeconomic Equilibrium 3:34 
    Long-Run Macroeconomic Equilibrium 4:00 
    Recessionary Gap 4:55 
    Inflationary Gap 5:20 
   The Long-Run Approach 5:50 
    Initial Negative Demand Shock 6:33 
    Higher Unemployment in the Short-Run 6:52 
    Economy Moves Back to Potential Output 7:12 
   Self-Correcting Recessionary Gap 7:54 
   Expansionary Fiscal Policy 11:22 
    'In the Long-Run, We Are All Dead' 12:11 
    Increase Government Spending 13:00 
    Decrease Taxes 13:30 
    Increase in Government Transfers 13:55 
   Expansionary Fiscal Policy Graph 14:27 
   The Long-Run Approach 18:08 
    An Initial Positive Demand Shock 18:21 
    Higher Inflation and Reduced Unemployment 18:20 
    Economy Moves Back to Potential Output 18:27 
   Self-Correcting Inflationary Gap 19:04 
   Contrationary Fiscal Policy 22:39 
    President Johnson's Temporary Hike on Income Taxes 22:50 
    Decrease Government Spending 23:16 
    Increase Taxes 23:34 
    Decrease in Government Transfers 23:50 
   Contrationary Fiscal Policy Graph 24:05 
   Stabilization Policy 28:10 
    Government Policy to Refuce the Severity of Recessions 28:17 
    Should the Government Use Fiscal Policy to Reduce the Severity of Negative Demand Shocks 28:37 
    What Should the Government Due in the Face of a Negative Supply Shock? 30:19 
   Example 1 31:32 
   Example 2 34:30 
   Example 3 38:22 
   Example 4 39:58 
  Fiscal Policy & The Multiplier 45:30
   Intro 0:00 
   Lesson Overview 0:09 
   The MPC and MPS 1:19 
    Investment Spending Increases 1:29 
    Increased Output 2:03 
    Marginal Propensity to Consumer and Marginal Propensity to Save 3:02 
    MPC 3:18 
    MPS 3:28 
   The Marginal Propensity to Consume 3:57 
    Number Is 0 4:55 
    Number is 1 5:13 
    Number is Usually Between 0 and 1 6:39 
    Number is 0.8 7:52 
    Formula 8:15 
   The Multiplier Effect 9:51 
    Autonomous Change in Aggregate Spending 9:59 
    Multiplier 10:36 
    Size of the Multiplier 11:36 
   Consumption Function 13:15 
    Equation Showing How an Individual's Household's Consumer Spending Changes with Disposable Income 13:45 
    Autonomous Consumer Spending 13:58 
    Formula 14:48 
    Example 15:30 
   Consumption Function Example 18:27 
   Shifts of the Aggregate Consumption Function 21:31 
    Changes in Expected Future Disposable Income 21:42 
    Changes in Aggregate Wealth 23:22 
   Investment Spending 24:12 
    If Interest Rates Go Up or Down 24:36 
    Expected Future Growth 25:07 
    Formula 25:18 
    Positive Unplanned Inventory Investment 25:31 
   Tax (or Government Transfer) Multiplier 26:38 
   Automatic Stabilizers 31:26 
    As the Economy Expands 32:03 
    As the Economy Contracts 32:42 
   2008 and 2009 Stimulus Package 33:20 
    2008 Question of Tax Cuts or Transfer Payments 33:21 
    2009 American Recovery and Reinvestment Act 36:16 
   Example 1 38:23 
   Example 2 41:19 
   Example 3 42:33 
   Example 4 43:13 

Section 4: Financial Sector
  Saving, Investment & the Financial System 48:57
   Intro 0:00 
   Lesson Overview 0:08 
   Saving-Investment Spending Identity 1:49 
    Savings-Investment Spending Identity 2:09 
    Imagine a Country with No Government and No Trade 2:35 
   Budget Surplus and Deficit 7:34 
    Budget Surplus 8:19 
    Budget Deficit 10:34 
    Budget Balance 12:19 
    National Savings 12:42 
   Capital Inflows and Outflows 14:26 
    Cashflow 15:10 
    Capital Inflow 15:57 
    2008 Example 16:12 
   Tasks of a Financial System 20:43 
    Reduce Transaction Costs 21:25 
    Reduce Risk 21:59 
    Provide Liquidity 24:04 
   Types of Financial Assets 25:29 
    Bonds 25:45 
    Loan-Backed Securities 28:39 
    Stocks 30:12 
   Financial Intermediary 31:56 
    Types of Financial Intermediaries 32:01 
    75% of Wealth in U.S. is Held by These Four 32:29 
   Mutual Funds 33:08 
    Definition of Mutual Funds 33:17 
    Benefit 34:39 
    Downside 35:03 
    Households Owned Over $10 Trillion in Mutual Funds 37:47 
    Fidelity Investments 38:02 
   Pension Funds and Life Insurance 38:16 
    Pension Funds 38:22 
    Life Insurance 40:31 
   Banks 42:34 
    Accept Funds From Depositors 42:40 
    Keep a Fraction of Customers' Deposits in Cash Form 42:44 
    FDIC 43:55 
   Example 1 44:10 
   Example 2 45:01 
   Example 3 45:48 
   Example 4 47:34 
  The Definition & Time Value of Money 34:05
   Intro 0:00 
   Lesson Overview 0:21 
   What is Money? 1:49 
    Assets That Can Be Easily Used to Purchase Goods and Services 1:52 
    Money in Savings Accounts, CDs or Money Market Accounts 3:02 
   Roles of Money 5:37 
    Medium of Exchange 5:53 
    Store of Value 6:56 
    Unit of Account 9:15 
   Types of Money 9:56 
    Commodity Money 10:16 
    Commodity-Backed Money 10:50 
    Fiat Money 12:20 
   M1 and M2 16:29 
    M1 16:34 
    M2 16:40 
    2010 Facts 17:01 
   A Penny Doubled 18:59 
   Present vs. Future Value 20:26 
    Formula 20:35 
    Future Value 20:42 
    Present Value 20:49 
    Interest Rate 20:54 
    Time Period of Investment 20:57 
   $0.01 = ????? 23:25 
   Winning the Lottery Example 24:52 
   Example 1 27:06 
   Example 2 28:33 
   Example 3 29:34 
   Example 4 31:21 
  Banking & Money Creation 32:00
   Intro 0:00 
   Lesson Overview 0:12 
   What Do Banks Do? 1:09 
    What Are Banks 1:13 
    Restrictions 1:52 
    Federal Reserve 2:24 
   Assets and Liabilities of Park's Place Bank 2:39 
   The Problem of Bank Runs 6:36 
    Financial Trouble Rumors Lead to Depositors Withdrawing Funds 7:17 
    Panic 7:30 
    Self-Fulfilling Prophecy 8:02 
   Bank Regulation 8:37 
    Deposit Insurance 8:56 
    Capital Requirement 9:46 
    Reserve Requirements 10:21 
    Discount Window 11:23 
   Money Creation Process 12:24 
   Money Multiplier Formula 15:20 
    Required Reserve Ratio 15:23 
    Example 15:31 
   Real World Money Multiplier 17:11 
    Some People Hold Onto Cash 17:16 
    Monetary Base 17:37 
    Money Supply 18:20 
    Money Multiplier 18:33 
    Normally It Is About 1.9 19:08 
    2008: It Was About 0.8 19:35 
    Venn Diagram 20:06 
   Example 1 22:28 
   Example 2 23:57 
   Example 3 26:30 
   Example 4 29:05 
  The Federal Reserve & Monetary Policy 25:42
   Intro 0:00 
   Lesson Overview 0:08 
   History of the Federal Reserve 1:23 
    Established in 1913 1:27 
    Private Institution with a Public Component 2:22 
    Board of Governors 3:10 
   The Federal Reserve Structure 3:54 
    12 Federal Reserve Banks 3:57 
    Federal Open Market Committee 4:50 
   Functions of the Federal Reserve 5:22 
    Provide Financial Services 5:35 
    Supervise and Regular Banking Institutions 6:14 
    Maintain the Stability of the Financial System 6:34 
    Conduct Monetary Policy 7:20 
   Reserve Requirement and Discount Rate 8:00 
    Reserve Requirement 8:10 
    Discount Rate 10:24 
   Open Market Operations 10:55 
    Fed Buys or Sells U.S. Treasury Bills Through a Commercial Bank 11:25 
    How Do They Purchase It? 12:36 
   The Financial Crisis of 2008 13:31 
    Subprime Lending and the Housing Bubble 13:36 
    Fed Chair Alan Greenspan 14:01 
    Low Interest Rates 14:23 
    2003-2006 Suprime Lending Increased in Popularity 14:52 
   Crisis and Response 16:19 
    Housing Collapse 16:24 
    Fed Bailed Our Bear Stearns and Insurance Giant AIG 16:37 
    Widespread Panic in the Financial System 16:55 
    Quantitative Easing 17:48 
   Example 1 18:45 
   Example 2 19:25 
   Example 3 20:07 
   Example 4 22:57 
  The Money Market 33:52
   Intro 0:00 
   Lesson Overview 0:04 
   Opportunity Cost of Holding Money 0:57 
    Can't Be Used to Invest in Other Assets 1:02 
    2007 Federal Funds Rate 2:24 
    2008 Federal Funds Rate 2:35 
    2009 Federal Funds Rate 2:42 
   The Money Demand Curve 5:01 
   Shifts of the Money Demand Curve 6:29 
    Changes in the Aggregate Price Level 7:18 
    Changes in Real GDP 8:54 
    Changes in Technology 9:44 
    Changes in Institutions 12:55 
   Money and Interest Rates 13:24 
    FOCM Sets up the Target Federal Funds Rate 13:28 
    Lower Federal Funds Rate 15:11 
    0% Federal Funds Rate Era 16:10 
   Liquidity Preference Model 16:56 
    Liquidity Preference Model of the Interest Rate 17:09 
    Open Market Operations 18:21 
    Changing Reserve Requirements 18:52 
    Lending Through the Discount Window 19:22 
   Equilibrium in the Money Market 19:52 
   Example 1 21:19 
   Example 2 23:21 
   Example 3 26:22 
   Example 4 30:14 
  The Market for Loanable Funds 32:55
   Intro 0:00 
   Lesson Overview 0:05 
   Loanable Funds Market 0:57 
    Loanable Funds Markets 1:17 
    Savers 1:46 
    Borrowers 2:26 
    Equilibrium in the Loanable Funds Market 3:27 
   Equilibrium in Loanable Funds Market 3:45 
   Shifts of Demand for Loanable Funds 5:47 
    Changes in Perceived Business Opportunities 5:59 
    Changes In the Government's Borrowing 7:10 
   Shifts of the Supply of Loanable Funds 8:35 
    Changes in Private Savings Behavior 8:44 
    Changes in Capital Inflows 10:24 
   Inflation and Interest Rates 11:07 
    Real Interest Rate 12:01 
    A Good Hedge Against Inflation 14:21 
    Fisher Effect 14:54 
   Increase in Supply of Loanable Funds 15:38 
   Interest Rate in the Short Run 16:57 
    Fall in Interest Rates 17:00 
    Increase in the Money Market 17:14 
    Short Run 17:26 
   Interest Rate in the Long Run 18:16 
    Increase in Money Supply in Long Run 18:41 
    Supply of Loanable Funds 19:42 
    Supply and Demand for Loanable Funds Determines the Interest Rate 20:12 
   Example 1 20:20 
   Example 2 23:40 
   Example 3 28:18 
   Example 4 29:29 

Section 5: Inflation, Unemployment, and Stabilization Policies
  Budget Deficits & the National Debt 40:08
   Intro 0:00 
   Lesson Overview 0:07 
   The Budget Balance 1:20 
    Formula 1:54 
    Rule of Thumb 4:07 
    Generally, Contractionary Fiscal Policies Will Increase the Budget Balance 6:02 
   Cyclically Adjusted Budget Balance 9:35 
    Estimate if Real GDP was Equal to Potential Output 9:56 
    Economic Expansion 10:13 
    Contractions 10:44 
   Should the Budget Be Balanced? 11:35 
    Balanced Budget Amendment 13:00 
    Restricts a Country's Ability to Run a Budget Deficit During Recessions 13:40 
    National Debt 15:50 
   Problems of a Rising Government Debt 16:15 
    Crowding Out Effect 16:28 
    Today's Deficits Increases the Public Debt 18:17 
   Historical Debt-GDP Ratio 20:33 
   Trends in Debt-GDP Ratio 24:03 
    U.S. Trends to Run a Budget Deficit During War 24:05 
    U.S. Total Debt-GDP Ratio Exceeded 100% During Relative Peace 24:30 
    Debt Grows Larger with Projected Budget Deficits Continuing 25:06 
   Implicit Liabilities 26:35 
    Spending Promises Made by the Government 26:45 
    Three Largest Implicit Liabilities of the American Gov 27:27 
    Net Present Value of Debt 28:26 
   Example 1 29:25 
   Example 2 33:40 
   Example 3 35:28 
   Example 4 37:59 
  Inflation & Unemployment 32:24
   Intro 0:00 
   Lesson Overview 0:09 
   The Short-Run Phillips Curve 1:05 
    High Unemployment Rate 1:24 
    Low Unemployment Rate 1:49 
   Short-Run Phillips Curve Graph 3:20 
   Inflation Expectations 6:24 
    Increase in Expected Inflation 6:47 
    Expectations Based on Experience 6:58 
   Inflation and Unemployment in the Long Run 7:39 
    Most Economists Believe There is No Trade-Off Between Unemployment and Inflation 7:48 
    Nonaccelerating Inflation Rate of Unemployment NAIRU 8:27 
    Long-Run Phillips Curve 9:01 
   Long-Run Phillips Curve and NAIRU 9:24 
   The Costs of Disinflation 12:03 
    Harder to Bring Inflation Down Than to Increase It 13:10 
    Disinflation 13:38 
    Long-Term Benefit of Controlling Double-Digit Inflation 14:13 
    Announcing Policy of Disinflation 14:55 
   The Costs of Deflation 15:21 
    Deflation is the Fall in the Aggregate Price Level 15:53 
    Why is Deflation Bad? 16:35 
    Lenders Gain and Borrowers Lose 17:31 
    Effect of Deflation 17:43 
   Japan's Liquidity Trap of the 1990s 19:30 
    Liquidity Trap 22:13 
    Japan Example 22:58 
   Example 1 23:48 
   Example 2 25:14 
   Example 3 27:05 
   Example 4 28:31 

Section 6: Economic Growth and Productivity
  Economic Growth 32:28
   Intro 0:00 
   Lesson Overview 0:07 
   Real GDP Per Capita 1:17 
    Real GDP Per Capita 1:23 
    How Do You Find the Real GDP Per Capita 1:34 
    Many Countries Have Lower Standard of Living Than U.S.A. 100 Years Ago 4:29 
   Long Run Economic Growth 5:36 
    Growth Rate 6:00 
    Physical Capital 8:09 
    Human Capital 8:27 
    Technology 9:17 
   Economic Growth on a PPF Graph 10:37 
   Investment vs. Consumer Good 15:31 
   Long-Run Growth and the LRAS Curve 19:08 
   Short-Run to Long-Run: Example 1 21:07 
   Short-Run to Long-Run: Example 2 24:01 
   Example 1 26:09 
   Example 2 27:33 
   Example 3 29:48 
   Example 4 31:09 
  Balance of Payments 36:56
   Intro 0:00 
   Lesson Overview 0:06 
   Balance of Payments Account 1:01 
    Current Account 1:09 
    Sales and Purchases of Goods and Services 1:54 
    Factor Income 2:58 
    International Transfers 3:48 
   Sales, Factor and Transfers 4:13 
   Financial Account 7:58 
    Official Asset Sales and Purchases 8:29 
    Private Sale and Purchases of Assets 9:01 
    Financial Account 10:19 
   Current Account = -Financial Account 12:10 
    Formula 12:30 
    What a Country's Financial Account Measures 13:37 
   Financial Account and Loanable Supplies 14:30 
    Foreign Direct Investment 14:40 
    Exchanges Rates 15:20 
    Assume Equilibrium Interest Rate is 4% 15:30 
   The Loanable Funds Model: Example 1 15:50 
   The Loanable Funds Model: Example 2 16:49 
   GDP, GNP, and the Current Account 21:33 
    Basic Equation for National Income Accounting 21:45 
    Why Doesn't the National Income Equation Use the Current Account as a Whole? 22:23 
    Gross National Product Includes International Factor Income 22:54 
    Why Do We Use GDP and Not GNP 23:03 
   Global Savings Glut 24:07 
    U.S. Entered in a Massive Current Account Deficit 24:14 
    U.S. Takes in a Lot of Capital Inflow from the Rest of the World 24:50 
    How Did This Happen? 25:06 
   Example 1 27:05 
   Example 2 28:10 
   Example 3 30:43 
   Example 4 33:01 

Section 7: Open Economy: International Trade and Finance
  Foreign Exchange Market 40:31
   Intro 0:00 
   Lesson Overview 0:06 
   Understanding Exchange Rates 1:19 
    Items Produced in a Country Will be Paid for In That Country's Currency 1:24 
    Foreign Exchange Market 2:12 
   The Foreign Exchange Market: Dollar Example 5:33 
   The Foreign Exchange Market: Euro Example 9:44 
   Inflation and Real Exchange Rates 15:34 
    Real Exchange Rates 16:32 
    Current Account Responds Only to Changes in the Real Exchange Rate 17:01 
   Purchasing Power Parity 18:02 
    Concept for Analyzing Interest Rates 18:10 
    Purchasing Power Parity Between Two Countries Currencies 18:24 
    In Theory, You 'Should' Be Able to Buy $100 Worth of Stuff in Any Country 19:01 
   Burgernomics 21:03 
    Big Mac Index 21:13 
    Not the Best Measure 21:54 
    U.S. Cost of Big Macs 22:38 
    Overvalued Big Macs 23:10 
    Undervalued Big Macs 24:09 
    Chart: Buns For Your Buck 25:12 
   Floating vs. Fixed Exchange Rate Regime 26:31 
    Fixed Exchange Rate 26:40 
    Floating Exchange Rate 27:50 
   Exchange Rate Dilemma 29:40 
    Fixed Rate Regimes Give Predictability to Trade 29:44 
    Every Choice Has a Cost 30:30 
   Example 1 32:21 
   Example 2 33:55 
   Example 3 35:25 
   Example 4 37:30 

Section 8: AP Test
  Major Graphs Review 21:51
   Intro 0:00 
   Lesson Overview 0:08 
   The Scenario 1:07 
   The Inflationary Gap 3:27 
   The Money Market Graph 7:51 
   Higher Interest Rate = Decreased Investment 14:52 
   Exchange Market Graph 17:32 
  AP Practice Exam: Multiple Choice 46:02
   Intro 0:00 
   Multiple Choice 1 0:30 
   Multiple Choice 2 6:21 
   Multiple Choice 3 7:33 
   Multiple Choice 4 9:54 
   Multiple Choice 5 12:04 
   Multiple Choice 6 14:49 
   Multiple Choice 7 17:11 
   Multiple Choice 8 19:11 
   Multiple Choice 9 20:17 
   Multiple Choice 10 22:55 
   Multiple Choice 11 24:25 
   Multiple Choice 12 27:56 
   Multiple Choice 13 29:08 
   Multiple Choice 14 30:00 
   Multiple Choice 15 31:26 
   Multiple Choice 16 32:57 
   Multiple Choice 17 33:44 
   Multiple Choice 18 36:12 
   Multiple Choice 19 38:11 
   Multiple Choice 20 40:40 
   Multiple Choice 21 42:55 
  AP Practice Exam: Free Response, 2012 23:14
   Intro 0:00 
   Free Response 1 0:10 
   Free Response 2 11:19 
   Free Response 3 17:05 
  AP Practice Exam: Free Response, 2013 22:39
   Intro 0:00 
   Free Response 1 0:14 
   Free Response 2 9:56 
   Free Response 3 15:34 
  AP Practice Exam: Full-Length Multiple Choice 1:16:21
   Intro 0:00 
   Multiple Choice 1 0:19 
   Multiple Choice 2 1:09 
   Multiple Choice 3 2:34 
   Multiple Choice 4 3:19 
   Multiple Choice 5 4:36 
   Multiple Choice 6 5:54 
   Multiple Choice 7 7:08 
   Multiple Choice 8 8:37 
   Multiple Choice 9 9:36 
   Multiple Choice 10 10:29 
   Multiple Choice 11 11:57 
   Multiple Choice 12 12:52 
   Multiple Choice 13 14:09 
   Multiple Choice 14 16:52 
   Multiple Choice 15 19:14 
   Multiple Choice 16 20:48 
   Multiple Choice 17 21:46 
   Multiple Choice 18 22:57 
   Multiple Choice 19 24:20 
   Multiple Choice 20 26:09 
   Multiple Choice 21 27:02 
   Multiple Choice 22 28:10 
   Multiple Choice 23 28:52 
   Multiple Choice 24 29:36 
   Multiple Choice 25 30:24 
   Multiple Choice 26 31:31 
   Multiple Choice 27 32:44 
   Multiple Choice 28 33:39 
   Multiple Choice 29 35:40 
   Multiple Choice 30 37:02 
   Multiple Choice 31 38:10 
   Multiple Choice 32 38:49 
   Multiple Choice 33 39:40 
   Multiple Choice 34 40:30 
   Multiple Choice 35 41:50 
   Multiple Choice 36 42:19 
   Multiple Choice 37 44:37 
   Multiple Choice 38 46:09 
   Multiple Choice 39 48:33 
   Multiple Choice 40 49:20 
   Multiple Choice 41 50:24 
   Multiple Choice 42 52:47 
   Multiple Choice 43 53:54 
   Multiple Choice 44 55:15 
   Multiple Choice 45 56:47 
   Multiple Choice 46 57:48 
   Multiple Choice 47 60:37 
   Multiple Choice 48 61:40 
   Multiple Choice 49 62:41 
   Multiple Choice 50 63:17 
   Multiple Choice 51 64:09 
   Multiple Choice 52 65:04 
   Multiple Choice 53 66:20 
   Multiple Choice 54 68:32 
   Multiple Choice 55 69:07 
   Multiple Choice 56 69:50 
   Multiple Choice 57 71:26 
   Multiple Choice 58 72:38 
   Multiple Choice 59 73:19 
   Multiple Choice 60 74:36 

Duration: 16 hours, 51 minutes

Number of Lessons: 27

This time-saving course is geared towards the high school student taking AP Macroeconomics in school and preparing for the exam. However, the concepts, detail level, and sample questions are also appropriate for students taking Macroeconomics in college.

Additional Features:

  • Free Sample Lessons
  • Downloadable Lecture Slides
  • Study Guides
  • Instructor Comments

Topics Include:

  • Comparative Advantage
  • Supply & Demand
  • Inflation
  • Fiscal Policy
  • Time Value of Money
  • Monetary Policy
  • Balance of Payments
  • Foreign Exchange Market
  • Sample AP Exam

Professor Jibin Park received his M.A. in Education and B.A. in Economics & Government from Claremont McKenna College. He has also been teaching AP Macroeconomics for 10+ years and has been an AP grader for 7+ years, so he knows what it takes to get a 5 on the test.

Student Testimonials:

“Thank you for your informative lectures! They have been extremely helpful! “ — Anna H.

“This lecture was really helpful. Thank you, Professor Park!” — Christina G.

“Thank you for this lecture! I enjoyed your Shark Tank allusion when you talked about bonds.” — Hillary H.

“At first I didn't really understand the relationship between the money market and the loanable funds market, but the examples really helped me visualize it. Good lecture!” — Caroline T.

“I found this lecture to be very clarifying thank you!” — Zakaria J.

Visit Prof. Park’s page

Student Feedback

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By ?? ?•May 2, 2019
Hi! I am wondering why a decreased private savings rate changes the supply, but not the demand in Example 3. Thank you!
By Luke Park•April 4, 2018
Thank you!
By Grace Shen•March 22, 2018
Hi Professor Park,

For the second example (long-run), I was still kind of confused about why the supply of loanable funds would increase? Thank you!
By Ikmanpreet Singh•February 22, 2018
Can you please explain more in detail about who is in control of monetary policy and about who is in control of fiscal policy?

Thank You
By Chenelle Lan•April 16, 2017
Hi Professor,
I have a question on the calculation of REAL GDP. I know when you calculate the REAL GDP, you are multiply the price times the quantity of good. But how do economists come up with one price for a particular good when different merchants sell it at different prices? Thank You.

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