AP Economics – 5/03/19
I. Objectives:
- Demonstrate how absolute and comparative advantage is determine and how these advantages are applied to create beneficial trade.
- Identify and explain the determinants of international capital flows
- Explain the importance of real exchange rates and their role in the current account
- Describe the effects of currency devaluation and revaluation under a fixed exchange rate regime
- Explain how macroeconomic policy affects exchange rates under a floating exchange rate regime
- Illustrate the effects of a tariff and an import quota
II. Review for test on Monday
- Absolute, Comparative and terms of trade
- Composition of Current & Financial Accounts –
- Cash in-flows and Outflows
- Currency Appreciation and Depreciation
- Exchange Rate Graphs
- Tariffs and Quotas (Graphs)
Section 8 Exam
- Part A
- Part B on iLearn
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