Economics (McConnell) AP Edition, 19th Edition

Chapter 27: Basic Macroeconomic Relationships

The content of this chapter may be included on the AP* Macroeconomics exam.

After reading this chapter, you should be able to:

1. Describe how changes in income affect consumption (and saving).
2. List and explain factors other than income that can affect consumption.
3. Explain how changes in real interest rates affect investment.
4. Identify and explain factors other than the real interest rate that can affect investment.
5. Illustrate how changes in investment increase or decrease real GDP by a multiple amount.

AP Chapter 27 Introduction (11.0K)