AP Macroeconomics

Being a high-school student isn’t hard; it is all about the mindset behind it. We just need to keep going and looking forward no matter how difficult or easy the assignments or tasks are. Part of my expertise in the high-school years was AP Macroeconomics. 

This AP class has given to students to prepare for college classes. I have no intention of taking the exam, however, I was really interested in pursuing the class and learn about the flow of the macroeconomics and considering taking the exam in my final year.

Macroeconomics itself already define as global, the nation wide, therefore it is the branches of economics factors measure in a larger scale.

One thing I learned was calculating the Growth Domestic Product, GDP:

GDP is the measure of all production of find goods in an economy in a given period.

 

 

In Expenditure(spending) Method: GDP = C + I + G + NX

C  = Consumption of Household

I = Investment

G = Government Spending

NX = Net export = Export – Import

So, what came next?

  • opportunity costs – the idea of sacrifice between two things and needed to give up one.

  • The value of the next best alternative that is forgone when choice is made
  • Form of income ( interest)

Transfer Payments – payments given to individuals without a corresponding good sold or services rendered.

Social Security Unemployment/ Welfare

2nd hand sales does not counted in GDP

Growth National Product (GNP):  Value of all good and services produced by factors of one country

  • Include all Chinese abroad – production of foreigners in China
  • GNP is Y = C + I + G + X + Z.
  • GNP = Consumption + Investment + Government + X (net exports, or imports minus exports) + Z  (net income earned by domestic residents from overseas investments – net income earned by foreign residents from domestic investments.)

Consumer Price Index = Bureau of  Labor statistics

→ A group of good that is purchase at a typical household

→ Basket – measure the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

This is a short summary of my chapters, you can take a this class if you are preparing to college, it will be very helpful if you are planing to take major in economics or not it is good to experience and learn different things. This learning experience helped me to become much precise on the way I speak about economics, money spending, the interest rates, etc. 

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