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Krugman AP Macroeconomics Chapter 11

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Chapter 11: Interpreting Real Gross Domestic Product ? -The difference between real GDP and nominal GDP -Why real GDP is the appropriate measure of real economic activity ? GDP: a measure of the size of the economy represents increase in prizes of goods and services rather than an increase in output provides a good way to compare the size of different economies but not a good measure of the economy?s growth over time can grow to economic expansion or just inflation Real GDP: measures actual changes in aggregate output/ adjusted for price changes total value of all final goods and services produced during a given year calculated using the prices of a selected base year (assumed prices stay constant)

Pre-Colonial Vocab

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Alisa Chen Hamza Noor Christina Xu Jenny Zhi Vocab Unit One People 1. John Rolfe: John Rolfe was a farmer in Jamestown who introduced tobacco to the settlers, a plant he had saw the local Indians growing. He later married Pocahontas and died during an native attack. 2. Pocahontas: daughter of Powhatan, the chief of the of Powhatan Indians. Married John Rolfe and converted to Christianity after getting captured by the settlers. 3. John Smith: famous traveler and organized leader who lead the colonists in Jamestown away from death and disaster. He organized Jamestown into a successful colony. 4. John Cabot: The first person representing England to sail to the New World, who at the time was looking for a passage to the Orient.

Slavery vs Indentured Servitude

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Alisa Chen Hamza Noor Christina Xu Jenny Zhi 1st Hour Slavery and Indentured Servitude Essay Outline Thesis In colonial times, indentured servants and slaves had some similar lacks of rights, but slaves were far worse off; although both were given certain rights, indentured servants obtained more freedom after their terms ended, such as the right to land and supplies at the end of a work term; and though neither had a prominent voice in politics, the slaves? political rights were more limited, and they had heavier punishements for breaking laws; lastly, neither was paid and all the profit from their work went to the owner, but indentured servants? work led towards their eventual freedom, where they had limited economic help. Body Paragraph 1 (Social)

After the Fact Chapter 5: Jackson's Frontier and Turner's Thesis

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Jackson?s Frontier ? and Turner?s Thesis What is a small-scale theory? Small-scale theories are theories that are parts of a larger body of theory that explains specific puzzles. What is a grand scale theory? Grand theory is a wider scale of theory that encourages historians to figure out what part of history is interesting and important, and which part to study. Define the ?Frontier?. A frontier is a large area of unsettled land that creates a border. Why did Turner feel there was no longer a ?frontier? in 1890? Turner felt that the unsettled frontier had so many small, broken up settlements that it was no longer an unsettled frontier. According to Turner, American History up to 1893 had been to a large degree, the history of what? The history of the Great West.

Jacksonian Democracy

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JACKSONIAN DEMOCRACY Missouri Compromise 1820 Sectionalism reflected in the power in the national government 3 Sections/spokesperson Northeast- D. Webster - Mass. West - Henry Clay - Kentucky South - John C. Calhoun - South Carolina Sectionalism v Nationalism or States? Rights v National Government Election of 1824 ?Corrupt Bargain? Art of political campaigning Election of 1828 Only 2 candidates - New nominating conventions Creation of two Factions: Jackson-Calhoun Adams-Clays Nuclei for democrats Nuclei for whigs - Arose in opposition to Jackson Republicans during the ?era of good feelings? breaking up into conservatives and Democratic factions within each state Democratic faction wished to level down political inequalities - results:

Great Awakening vs Enlightenment

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Christina Xu Jenny Zhi The Great Awakening vs. Enlightenment The Great Awakening Brought spirit of religious fervor to colonies along with the belief that everyone has the potential to break away from his/her past and start a future with God Important figures John and Charles Wesley- founders of Methodism, traveled to Georgia and other colonies in 1730?s to preach George Whitfield- promoted religious revivalism, sparked beginning of Great Awakening Jonathon Edwards- preached Puritan ideas, attacked easy salvation Enlightenment Belief that reason, not just faith, creates progress in advanced knowledge. People didn?t always have to turn to God with their problems, could use moral sense. Important figures

After the Fact Chapter 3: Declaring Independence

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Jenny Zhi 1st Hour After the Fact Chapter 3: Declaring Independence Under what circumstances did Jefferson write the Declaration of Independence? Jefferson wrote the Declaration of Independence because he was a Virginian, which was held highly by people in colonial times, he was popular with the majority of the people, and he was a talented writer. For these reasons, most of Congress, including John Adams, pressed Jefferson to draft the declaration. How did Jefferson feel about independence? Jefferson did believe in independence, but he didn?t support it as fervently as some radicals, such as John and Samuel Adams. He performed his duties at Congress meetings, but he disliked the political fighting that was occurring. What did Richard Henry Lee do and why?

Where did services originate?

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12.1Where Did Services Originate? Hongying Jiang, Shivani Kolluru, Jennifer Zhang, Jenny Zhi 6th Hour Intro Service: any kind of activity that fulfills a human want or need and returns money to those who provide it Settlement: permanent collection of buildings where people reside, work, and obtain services Settlements range in size Intro Only proximity to market critical for services Optimal location is near its customers Larger cities provide more services because more customers reside there Key Issue 1 Services provided everywhere Majority of people in MDCs provide services ? workers in North America provice services Typically less than ? in LDCs Part of GDP that services provide: More than 2/3 in MDC Less than ? in LDC Key Issue 1 Figure 12-1 Types of Services 3 types of services:

Krugman AP Macroeconomics Chapter 15

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Chapter 15: The Measurement and Calculation of Inflation ? -How the inflation rate is measured -What a price index is and how it is calculated -The importance of the consumer price index and other price indexes ? Aggregate Price Level: a measure of the overall level of prices in the economy/single number to represent the overall level of prices Market Basket: a hypothetical set of consumer purchases of goods and services/Hypothetical Consumption bundle Consumption bundle: the typical basket of goods and services purchased before the price changes Price index: measure of the cost of purchasing a given market basket in a given year Base year: always results in a price index of 100 Price indexes are also the basis for measuring inflation

Krugman AP Macroeconomics Chapter 14

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Chapter 14: Inflation: An Overview ? -The economic costs of inflation -How inflation creates winners and losers -Why policy makers try to maintain a stable rate of inflation -The difference between real and nominal values of income, wages, and interest rates -The problems of deflation and disinflation ? Inflation: Most common complaint: an increase in the price level makes everyone poorer- does not make everyone poorer Real Wage: the wage rate divided by the price level Real income: income divided by the price level Inflation Rate: the percent change per year in a price index?typically the consumer price index the percent increase in the overall level of prices per year ? ? The level of prices doesn?t matter Reducing prices = Reducing income

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