Written specifically for AP® students and teachers by AP® Economics experts, Krugman’s Economics for the AP® Course contains all the content, practice, and support you need to master the AP® Economics skills and course.

Macroeconomics

UNIT 1 Basic Economic Concepts

1.1 Scarcity and Choice
1.2 Opportunity Cost and the Production Possibilities Curve Model
1.3 Comparative Advantage and Gains from Trade
1.4 Demand
1.5 Supply
1.6 Market Equilibrium, Disequilibrium, and Changes in Equilibrium

Unit 2 Economic Indicators and the Business Cycle

2.1 The Circular Flow and Gross Domestic Product
2.2 Limitations of Gross Domestic Product
2.3 Unemployment
2.4 Price Indices and Inflation
2.5 Costs of Inflation
2.6 Real Versus Nominal Gross Domestic Product
2.7 Business Cycles

Unit 3 National Income and Price Determination

3.1 Aggregate Demand
3.2 Multipliers
3.3 Short-Run Aggregate Supply
3.4 The Long-Run Aggregate Supply Curve
3.5 Equilibrium in the Aggregate Demand–Aggregate Supply Model
3.6 Short-Run Changes in the Aggregate Demand–Aggregate Supply Model
3.7 Long-Run Self Adjustment in the Aggregate Demand–Aggregate Supply Model
3.8 Fiscal Policy
3.9 Automatic Stabilizers

Unit 4 The Financial Sector

4.1 Financial Assets
4.2 Nominal Versus Real Interest Rates
4.3A Definition, Measurement, and Functions of Money
4.3B Central Banks and the Federal Reserve
4.4 Banking and the Expansion of the Money Supply
4.5 The Money Market
4.6 Monetary Policy
4.7 The Loanable Funds Market

Unit 5 Long-Run Consequences of Stabilization Policies

5.1 Fiscal and Monetary Policy Actions in the Short Run
5.2 The Phillips Curve
5.3 Money Growth and Inflation
5.4 Government Deficits and the National Debt
5.5 Crowding Out
5.6 Economic Growth
5.7 Public Policy and Economic Growth

Unit 6 International Trade and Finance

6.1 Balance of Payments Accounts
6.2 Exchange Rates
6.3 The Foreign Exchange Market
6.4 Changes in Policies, Economic Conditions, and the Foreign Exchange Market
6.5 The Foreign Exchange Market and Net Exports
6.6 Real Interest Rate and International Capital Flows
Appendix Putting it All Together

AP® Macroeconomics Exam
Practice Test

Macroeconomics  Enrichment Modules
A: Recession and Recovery During the Pandemic
B: Federal Reserve Monetary Policy in an Ample Reserve Regime

Microeconomics

UNIT 1 Basic Economic Concepts

1.1 Scarcity and Choice
1.2 Economic Systems
1.3 The Production Possibilities Curve
1.4 Comparative Advantage and Trade
1.5 Cost-Benefit Analysis
1.6 Consumer Choice

Unit 2 Supply and Demand

2.1 Demand
2.2 Supply
2.3 Price Elasticity of Demand
2.4 Price Elasticity of Supply
2.5 Income Elasticity and Cross-Price Elasticity
2.6 Consumer Surplus, Producer Surplus, and Market Equilibrium
2.7 Market Disequilibrium and Changing Market Conditions
2.8A Government Intervention: Taxes, Subsidies, and Markey Efficiency
2.8B Government Intervention: Price and Quantity Controls
2.9 International Trade and Public Policy

Unit 3 Production Costs, Profit, and Perfect Competition

3.1 The Production Function
3.2 Short-Run Production Costs
3.3 Long-Run Production Costs
3.4 Types of Profit
3.5 Profit Maximization
3.6 Firms’ Entry and Exit Decisions
3.7 Perfect Competition

Unit 4 Imperfect Competition

4.1 Introduction to Imperfect Competition
4.2 Monopoly
4.3 Price Discrimination
4.4 Monopolistic Competition
4.5 Oligopoly and Game Theory

Unit 5 Factor Markets

5.1 Introduction to Factor Markets
5.2 Changes in Factor Demand and Supply
5.3 Profit Maximization in Factor Markets
5.4 Monopsony

Unit 6 Market Failure and the Role of Government

6.1 Market Outcomes and Social Efficiency
6.2 Externalities
6.3 Public Goods
6.4 Government Policies
6.5 Income and Wealth Inequality
AP® Microeconomics Exam
Practice Test

Microeconomics Enrichment Modules
C: Behavioral Economics
D: The Economics of Information
E: Indifference Curves and Consumer Choice

AP® Economics Skills Appendix:
Graphs in Economics

Financial Literacy Handbook
Glossary/Glosario
Index