• Scarcity
  • Opportunity cost and the Production Possibilities Curve
  • Comparative advantage and gains from trade
  • Supply and demand
  • Market equilibrium, disequilibrium, and changes in equilibrium
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  • The circular flow and GDP
  • Unemployment
  • Price indices and inflation
  • Real vs. nominal GDP
  • Business cycles
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  • Aggregate demand
  • Short-run and long-run aggregate supply
  • Equilibrium and changes in the Aggregate Demand-Aggregate Supply Model
  • Fiscal policy
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  • Financial assets
  • Definition, measurement, and functions of money
  • Banking and the expansion of the money supply
  • Monetary policy
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  • The Phillips Curve
  • Money growth and inflation
  • Government deficits and national debt
  • Crowding out
  • Economic growth
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  • Balance of payments accounts
  • Exchange rates and the foreign exchange market
  • Effects of changes in policies and economic conditions on the foreign exchange market
  • Changes in the foreign exchange market and net exports
  • Real interest rates and international capital flows
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