AP MACROECONOMICS
Phillips Curve dynamics
Master the Inflation-Unemployment tradeoff. Separate short-run movements along the SRPC (Demand Shocks) from catastrophic shifts of the entire curve (Supply Shocks causing Stagflation).
AP MACROECONOMICS
Crowding Out Effect
Observe how Government Deficit spending spikes Real Interest Rates in the Loanable Funds Market, inadvertently Crowding Out private business investment.