Unit 5: Long-Run Consequences of Stabilization Policies

AP Macroeconomics

What You Will Learn

The Phillips Curve: Two Versions

Short-Run Phillips Curve (SRPC)

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Long-Run Phillips Curve (LRPC)

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How the Phillips Curve Connects to AD-AS

Money Growth and Inflation

Government Deficits and National Debt

Long-Run Effects of Persistent Deficits

Economic Growth

The Policy Dilemma: Stagflation

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Connections Across Units

Study Tips

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AP Exam Weight

Unit 5 topics

Unit 5 overview5.1Fiscal and Monetary Policy Actions in the Long Run5.2The Phillips Curve5.3Money Growth and Inflation5.4Government Deficits and the National Debt5.5Crowding Out5.6Economic Growth5.7Public Policy and Economic Growth5.8Real Interest Rates and International Capital Flows
← Previous4.9 Fiscal and Monetary Policy Actions in the Short RunNext →5.1 Fiscal and Monetary Policy Actions in the Long Run
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