AP Macroeconomics Unit 3 National Income and Price Determination

This unit gets back to graphing. After no graphs in Unit 2, students may need a refresher on supply and demand graphs. The concept of “Price Determination” will be really clear on Aggregate Demand – Aggregate Supply graphs because it directly relates to price on market supply and demand graphs. However the horizontal axis represents many concepts: National Income, Unemployment, and Output (GDP).

I follow the sections in College Board’s AP Macroeconomics Course and Exam Description, except I move 3.2 Multipliers – I teach it with 3.8 Fiscal Policy. I also teach 3.1 Aggregate Demand and 3.3 Short-Run Aggregate Supply together.