Dive into AP Macroeconomics Unit 3 with a detailed breakdown of National Income and Price Determination, starting with Aggregate Demand (AD) and the multiplier effect. This episode unpacks the AD formula, curve, shifters, and common exam pitfalls to build your foundational skills for acing the AP exam. Perfect for students prepping for FRQs and multiple-choice questions on macroeconomic equilibrium.

• Aggregate Demand (AD): Definition, formula (AD = C + I + G + NX), and components
• Why the AD curve slopes downward: Wealth effect, interest rate effect, foreign purchases effect
• Movements along vs. shifts of the AD curve, with CITE mnemonic for shifters
• Common AP pitfalls: Transfer payments, inflation as movement, not shift
• Introduction to the multiplier effect and its rippl ...