1. Module Introduction to Macroeconomics KRUGMAN'S MACROECONOMICS for AP* 2 Margaret Ray and David Anderson

2. What you will learn in this Module : What a business cycle is and why policy makers seek to diminish the severity of business cycles How employment and unemployment are measured and how they change over the business cycle The definition of aggregate output and how it changes over the business cycle The meaning of inflation and deflation and why price stability is preferred How economic growth determines a country's standard of living Why models - simplified representations of reality- play a crucial role in economics

3. The Business Cycle Business Cycle Depression Recession Expansion

4. Employment, Unemployment, and the Business Cycles Employment Unemployment Labor force Unemployment rate

5. Aggregate Output and the Business Cycle Output Aggregate Output

6. Inflation, Deflation, and Price Stability Nominal income v. Real income Inflation Deflation Price Stability

7. Economic Growth Standards of living Economic growth

8. The Use of Models in Economics Models Other things equal assumption Ceteris Paribus