Explain (using graphs as appropriate) how the PPC illustrates opportunity costs, tradeoffs, inefficiency, efficiency, and economic growth or contraction under various conditions.

MOD-1.B.c

Learning Objective

Depth 2

Calculate (using data from PPCs or tables as appropriate) opportunity cost.

MKT-1.A.a

Learning Objective

Depth 2

Define absolute advantage and comparative advantage.

MKT-1.A.b

Learning Objective

Depth 2

Determine (using data from PPCs or tables as appropriate) absolute and comparative advantage.

MKT-1.B.a

Learning Objective

Depth 2

Explain (using data from PPCs or tables as appropriate) how specialization according to comparative advantage with appropriate terms of trade can lead to gains from trade.

MKT-1.B.b

Learning Objective

Depth 2

Calculate (using data from PPCs or tables as appropriate) mutually beneficial terms of trade.

MKT-2.A.a

Learning Objective

Depth 2

Define (using graphs as appropriate) the law of demand.

MKT-2.A.b

Learning Objective

Depth 2

Explain (using graphs as appropriate) the relationship between the price of a good or service and the quantity demanded.

MKT-2.B

Learning Objective

Depth 2

Explain (using graphs as appropriate) the determinants of demand.

MKT-2.C.a

Learning Objective

Depth 2

Define (using graphs as appropriate) the law of supply.

MKT-2.C.b

Learning Objective

Depth 2

Explain (using graphs as appropriate) the relationship between the price of a good or service and the quantity supplied.

MKT-2.D

Learning Objective

Depth 2

Explain (using graphs as appropriate) the determinants of supply.

MKT-2.E

Learning Objective

Depth 2

Define (using graphs as appropriate) market equilibrium.

MKT-2.F.a

Learning Objective

Depth 2

Define a surplus and shortage.

MKT-2.F.b

Learning Objective

Depth 2

Explain (using graphs as appropriate) how prices adjust to restore equilibrium in markets that are experiencing imbalances.

MKT-2.F.c

Learning Objective

Depth 2

Calculate (using graphs as appropriate) the surplus or shortage in the market experience an imbalance.

MKT-2.G

Learning Objective

Depth 2

Explain (using graphs as appropriate) how changes in demand and supply affect equilibrium price and equilibrium quantity.

MEA-1.A.a

Learning Objective

Depth 2

Define (using the circular flow diagram as appropriate) how GDP is measured and its components.

MEA-1.A.b

Learning Objective

Depth 2

Calculate nominal GDP.

MEA-1.B

Learning Objective

Depth 2

Define the limitations of GDP.

MEA-1.C.a

Learning Objective

Depth 2

Define the labor force, the unemployment rate, and the labor force participation rate.

MEA-1.C.b

Learning Objective

Depth 2

Explain how changes in employment and the labor market affect the unemployment rate and the labor force participation rate.

MEA-1.C.c

Learning Objective

Depth 2

Calculate the unemployment rate and the labor force participation rate.

MEA-1.D

Learning Objective

Depth 2

Define the limitations of the unemployment rate.

MEA-1.E.a

Learning Objective

Depth 2

Define the types of unemployment and the natural rate of unemployment.

MEA-1.E.b

Learning Objective

Depth 2

Explain changes in the types of unemployment.

MEA-1.F.a

Learning Objective

Depth 2

Define the consumer price index (CPI), inflation, deflation, disinflation, the inflation rate, and real variables.

MEA-1.F.b

Learning Objective

Depth 2

Explain how price indices can be used to calculate the inflation rate and to compare nominal variables over time periods.

MEA-1.F.c

Learning Objective

Depth 2

Calculate the CPI, the inflation rate, and changes in real variables.

MEA-1.G

Learning Objective

Depth 2

Define the shortcomings of the CPI as a true measure of inflation.

MEA-1.H

Learning Objective

Depth 2

Explain the costs that unexpected inflation (deflation) imposes on individuals and the economy.

MEA-1.I

Learning Objective

Depth 2

Define nominal GDP and real GDP.

MEA-1.J

Learning Objective

Depth 2

Calculate real GDP and the GDP deflator.

MEA-2.A.a

Learning Objective

Depth 2

Define (using graphs and data as appropriate) turning points and phases of the business cycle.

MEA-2.A.b

Learning Objective

Depth 2

Explain (using graphs and data as appropriate) turning points and phases of the business cycle.

MOD-2.A.a

Learning Objective

Depth 2

Define (using graphs as appropriate) the aggregate demand (AD) curve.

MOD-2.A.b

Learning Objective

Depth 2

Explain (using graphs as appropriate) the slope of the AD curve and its determinants.

MOD-2.B.a

Learning Objective

Depth 2

Define the expenditure multiplier, the tax multiplier, the marginal propensity to consume, and the marginal propensity to save.

MOD-2.B.b

Learning Objective

Depth 2

Explain how changes in spending and taxes lead to changes in real GDP.

MOD-2.B.c

Learning Objective

Depth 2

Calculate how changes in spending and taxes lead to changes in real GDP.

MOD-2.C.a

Learning Objective

Depth 2

Define (using graphs as appropriate) the short-run aggregate supply (SRAS) curve.

MOD-2.C.b

Learning Objective

Depth 2

Explain (using graphs as appropriate) the slope of the SRAS curve and its determinants.

MOD-2.D

Learning Objective

Depth 2

Explain (using graphs as appropriate) how movement along the SRAS curve implies a relationship between the price level (and inflation) and unemployment.

MOD-2.E

Learning Objective

Depth 2

Define (using graphs as appropriate) the short run and the long run.

MOD-2.F

Learning Objective

Depth 2

Define (using graphs as appropriate) the long-run aggregate supply (LRAS) curve.

MOD-2.G

Learning Objective

Depth 2

Explain (using graphs as appropriate) the short-run and long-run equilibrium price level and output level.

MOD-2.H

Learning Objective

Depth 2

Explain (using graphs as appropriate) the response of output, employment, and the price level to an aggregate demand or aggregate supply shock in the short run.

MOD-2.I

Learning Objective

Depth 2

Explain (using graphs as appropriate) the response of output, employment, and the price level to an aggregate demand or aggregate supply shock in the long run.

POL-1.A.a

Learning Objective

Depth 2

Define fiscal policy and related terms.

POL-1.A.b

Learning Objective

Depth 2

Explain (using graphs as appropriate) the shortrun effects of a fiscal policy action.

POL-1.A.c

Learning Objective

Depth 2

Calculate the short-run effects of a fiscal policy action.

POL-1.B

Learning Objective

Depth 2

Define why there are lags to discretionary fiscal policy.

POL-1.C.a

Learning Objective

Depth 2

Define automatic stabilizers.

POL-1.C.b

Learning Objective

Depth 2

Explain how automatic stabilizers moderate business cycles.

MEA-3.A.a

Learning Objective

Depth 2

Define the principal attributes—liquidity, rate of return, and risk— associated with various classes of financial assets, including money.

MEA-3.A.b

Learning Objective

Depth 2

Explain the relationship between the price of previously issued bonds and interest rates.

MEA-3.B.a

Learning Objective

Depth 2

Define the nominal and real interest rate.

MEA-3.B.b

Learning Objective

Depth 2

Explain the relationship between changes in nominal interest rates, expected inflation, and real interest rates.

MEA-3.B.c

Learning Objective

Depth 2

Calculate the nominal and real interest rate.

MEA-3.C.a

Learning Objective

Depth 2

Define money and its functions.

MEA-3.C.b

Learning Objective

Depth 2

Calculate (using data as appropriate) measures of money.

POL-2.A.a

Learning Objective

Depth 2

Define key terms related to the banking system and the expansion of the money supply.

POL-2.A.b

Learning Objective

Depth 2

Explain how the banking system creates and expands the money supply.

POL-2.A.c

Learning Objective

Depth 2

Calculate (using data and balance sheets as appropriate) the effects of changes in the banking system.

MKT-3.A.a

Learning Objective

Depth 2

Define (using graphs as appropriate) the money market, money demand, and money supply.

MKT-3.A.b

Learning Objective

Depth 2

Explain (using graphs as appropriate) the relationship between the nominal interest rate and the quantity of money demanded (supplied).

MKT-3.B

Learning Objective

Depth 2

Define (using graphs as appropriate) equilibrium in the money market.

MKT-3.C

Learning Objective

Depth 2

Explain (using graphs as appropriate) how nominal interest rates adjust to restore equilibrium in the money market.

MKT-3.D.a

Learning Objective

Depth 2

Explain (using graphs as appropriate) the determinants of demand and supply in the money market.

MKT-3.D.b

Learning Objective

Depth 2

Explain (using graphs as appropriate) how changes in demand and supply in the money market affect the equilibrium nominal interest rate.

POL-1.D.a

Learning Objective

Depth 2

Define monetary policy and related terms.

POL-1.D.b

Learning Objective

Depth 2

Explain (using graphs as appropriate) the shortrun effects of a monetary policy action.

POL-1.D.c

Learning Objective

Depth 2

Calculate (using data and balance sheets as appropriate) the effects of a monetary policy action.

POL-1.E

Learning Objective

Depth 2

Define why there are lags to monetary policy.

MKT-4.A.a

Learning Objective

Depth 2

Define (using graphs as appropriate) the loanable funds market, demand for loanable funds, and supply of loanable funds.

MKT-4.A.b

Learning Objective

Depth 2

Explain (using graphs as appropriate) the relationship between the real interest rate and the quantity of loanable funds demanded (supplied).

MKT-4.B

Learning Objective

Depth 2

Define national savings in both a closed and an open economy.

MKT-4.C

Learning Objective

Depth 2

Define (using graphs as appropriate) equilibrium in the loanable funds market.

MKT-4.D

Learning Objective

Depth 2

Explain (using graphs as appropriate) how real interest rates adjust to restore equilibrium in the loanable funds market.

MKT-4.E.a

Learning Objective

Depth 2

Explain (using graphs as appropriate) the determinants of demand and supply in the loanable funds market.

MKT-4.E.b

Learning Objective

Depth 2

Explain (using graphs as appropriate) how changes in demand and supply in the loanable funds market affect the equilibrium real interest rate and equilibrium quantity of loanable funds.

POL-1.F

Learning Objective

Depth 2

Explain (using graphs as appropriate) the effects of combined fiscal and monetary policy actions.

MOD-3.A.a

Learning Objective

Depth 2

Define (using graphs as appropriate) the shortrun Phillips curve and the long-run Phillips curve.

MOD-3.A.b

Learning Objective

Depth 2

Explain (using graphs as appropriate) short-run and long-run equilibrium in the Phillips curve model.

MOD-3.B

Learning Objective

Depth 2

Explain (using graphs as appropriate) the response of unemployment and inflation in the short run and in the long run.

POL-3.A.a

Learning Objective

Depth 2

Explain (using graphs as appropriate) how inflation is a monetary phenomenon.

POL-3.A.b

Learning Objective

Depth 2

Define the quantity theory of money.

POL-3.A.c

Learning Objective

Depth 2

Calculate the money supply, velocity, the price level, and real output using the quantity theory of money.

POL-3.B.a

Learning Objective

Depth 2

Define the government budget surplus (deficit) and national debt.

POL-3.B.b

Learning Objective

Depth 2

Explain the issues involved with the burden of the national debt.

POL-3.C.a

Learning Objective

Depth 2

Define crowding out.

POL-3.C.b

Learning Objective

Depth 2

Explain (using graphs as appropriate) how fiscal policy may cause crowding out.

MEA-2.B.a

Learning Objective

Depth 2

Define measures and determinants of economic growth.

MEA-2.B.b

Learning Objective

Depth 2

Explain (using graphs and data as appropriate) the determinants of economic growth.

MEA-2.B.c

Learning Objective

Depth 2

Calculate (using graphs and data as appropriate) per capita GDP and economic growth.

MOD-1.C

Learning Objective

Depth 2

Explain (using graphs as appropriate) how the PPC is related to the long-run aggregate supply (LRAS) curve.

POL-4.A.a

Learning Objective

Depth 2

Explain (using graphs as appropriate) public policies aimed at influencing long-run economic growth.

POL-4.A.b

Learning Objective

Depth 2

Define supply-side fiscal policies.

MEA-4.A.a

Learning Objective

Depth 2

Define the current account (CA), the capital and financial account (CFA), and the balance of payments (BOP).

MEA-4.A.b

Learning Objective

Depth 2

Explain how changes in the components of the CA and CFA affect a country's BOP.

MEA-4.A.c

Learning Objective

Depth 2

Calculate the CA, the CFA, and the BOP.

MKT-5.A.a

Learning Objective

Depth 2

Define the exchange rate, currency appreciation, and currency depreciation.

MKT-5.A.b

Learning Objective

Depth 2

Explain how currencies are valued relative to one another.

MKT-5.A.c

Learning Objective

Depth 2

Calculate the value of one currency relative to another.

MKT-5.B.a

Learning Objective

Depth 2

Define the foreign exchange market, demand for currency, and supply of currency.

MKT-5.B.b

Learning Objective

Depth 2

Explain (using graphs as appropriate) the relationship between the exchange rate and the quantity of currency demanded (supplied).

MKT-5.C

Learning Objective

Depth 2

Define (using graphs as appropriate) the equilibrium exchange rate.

MKT-5.D

Learning Objective

Depth 2

Explain (using graphs as appropriate) how exchange rates adjust to restore equilibrium in the foreign exchange market.

MKT-5.E.a

Learning Objective

Depth 2

Explain (using graphs as appropriate) the determinants of currency demand and supply.

MKT-5.E.b

Learning Objective

Depth 2

Explain (using graphs as appropriate) how changes in demand and supply in the foreign exchange market affect the equilibrium exchange rate.

MKT-5.F

Learning Objective

Depth 2

Explain (using graphs as appropriate) how changes in the value of a currency can lead to changes in a country's net exports and aggregate demand.

MKT-5.G

Learning Objective

Depth 2

Explain (using graphs as appropriate) how differences in real interest rates across countries affect financial capital flows, foreign exchange markets, and loanable funds markets.

CS.1.A

Learning Objective

Depth 3

Describe economic concepts, principles, or models.

CS.1.B

Learning Objective

Depth 3

Identify an economic concept, principle, or model illustrated by an example.

CS.1.C

Learning Objective

Depth 3

Identify an economic concept, principle, or model using quantitative data or calculations.

CS.1.D

Learning Objective

Depth 3

Describe the similarities, differences, and limitations of economic concepts, principles, or models.

CS.2.A

Learning Objective

Depth 3

Using economic concepts, principles, or models, explain how a specific economic outcome occurs or what action should be taken in order to achieve a specific economic outcome.

CS.2.B

Learning Objective

Depth 3

Using economic concepts, principles, or models, explain how a specific economic outcome occurs when there are multiple contributing variables or what multiple actions should be taken in order to achieve a specific economic outcome.

CS.2.C

Learning Objective

Depth 3

Interpret a specific economic outcome using quantitative data or calculations.

CS.3.A

Learning Objective

Depth 3

Determine the outcome of an economic situation using economic concepts, principles, or models.

CS.3.B

Learning Objective

Depth 3

Determine the effect(s) of one or more changes on other economic markets.