AP Macro Syllabus Audit

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Advanced Placement Macroeconomics After studying microeconomics for the first half of the school year students will begin the study of macroeconomics. This class meets Monday through Friday for 53 minutes. In macroeconomics students will study the “bigger picture”. They will look at how a nation measures economic growth and policies aimed at maintaining consistent growth over time. The aggregate demand and aggregate supply model will be used extensively to analyze different economic conditions. From such analysis students will better be able to understand economic events and their impact on the world. Textbook: McConnell, Campbell and Stanley Brue. Economics: Principles, Problems, and thPolicies. Boston: McGraw-Hill Irwin. 15 edition. 2002. Workbook: Morton, John S. and Rae Jean B. Goodman. Advanced Placement rdEconomics, New York: National Council on Economic Education. 3 edition. 2003. Web Tutorials: http://reffonomics.com/reff/index.html Additional readings will be taken from the following. The Wall Street Journal Businessweek Unit 1: Review of basic economic concepts relevant to macroeconomics (5 days) Key Concepts: supply and demand, equilibrium, determinants of demand, determinants of supply, elasticity, economic systems, opportunity cost, scarcity, production possibilities curve, circular flow model (Will be review because students will have covered this material during the first half of the year in the micro ...

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Advanced Placement Macroeconomics After studying microeconomics for the first half of the school year students will begin the study of macroeconomics.This class meets Monday through Friday for 53 minutes.In macroeconomics students will study the “bigger picture”.They will look at how a nation measures economic growth and policies aimed at maintaining consistent growth over time.The aggregate demand and aggregate supply model will be used extensively to analyze different economic conditions. From such analysis students will better be able to understand economic events and their impact on the world. Textbook: McConnell, Campbell and Stanley Brue. Economics: Principles, Problems, and th Policies. Boston:McGraw-Hill Irwin. 15edition. 2002. Workbook: Morton, John S. and Rae Jean B. Goodman.Advanced Placement rd Economics, New York: National Council on Economic Education.3 edition.2003. Web Tutorials:http://reffonomics.com/reff/index.htmlAdditional readings will be taken from the following. The Wall Street Journal Businessweek Unit 1: Review of basic economic concepts relevant to macroeconomics (5 days) Key Concepts: supply and demand, equilibrium, determinants of demand, determinants of supply, elasticity, economic systems, opportunity cost, scarcity, production possibilities curve, circular flow model (Will be review because students will have covered this material during the first half of the year in the micro portion of the class) Video: Commanding Heights: The Battle for the World Economy Part I, WGBH Boston Video, 2002.– Used to introduce the evolving debate over macroeconomic policy Reading: McConnell and Brue Chapters 2, 3, 4 Assessment: Theclass will be evaluated during the review and over classroom discussion and debate of the Commanding Heights Video. Unit 2: Measuring Economic Performance (10 days) Key Concepts: GDP, real GDP, expenditure approach, incomes approach, national income, business cycle, inflation, deflation, demand-pull inflation, deflation, cost-pushinflation, hyperinflation, CPI, PPI, GDP price deflator, unemployment, cyclical unemployment, frictional unemployment, structural

unemployment, seasonal unemployment, natural rate of unemployment, index of leading indicators, interest rate, prime interest rate Activities: 1.Morton Activities Macroeconomics, Unit 2, Activities 9-18 Reading: McConnell and Brue Chapters 7, 8 Assessment: Unit test with 20 multiple choice questions and 2 free response questions Unit 3: Aggregate Demand and Aggregate Supply (16 days) Key Concepts: aggregate expenditure model, marginal propensity to consume, marginal propensity to save, simple multiplier, tax multiplier, balanced budget multiplier, consumption, investment, determinants of investment, government expenditure, net exports, imports, exports, aggregate demand, aggregate supply, AD/AS model, long-run, short-run, fiscal policy, stagflation, automatic stabilizers Activities: 1.Morton Activities Macroeconomics, Unit 3, Activities 19-33 Reading: McConnell and Brue Chapters 9, 10, 11, 12, 16 Assessment: Unit test with 30 multiple choice and 3 free response questions requiring the use of graphs Unit 4: Money, Monetary Policy and Economic Stability (21 days) Key Concepts:money, functions of money, liquidity, M1, M2, M3, Phillips curve, short-run, long-run, velocity of money, MV=PQ, financial institutions, fractional reserves banking, required reserves, excess reserves, federal reserve system, dual banking system, monetary policy, open market operations, discount rate, federal funds rate, money demand, loanable funds, Fisher equation, nominal interest, real interest Activities: 1.Economics Challenge Competition 2.Morton Activities Macroeconomics, Unit 4, Activities 34-42 Video: The Federal Reserve: Inside the Fed Reading: McConnell and Brue Chapters 13, 14, 15 Assessment: Unit test with 20 multiple choice questions, 3 short answer and 1 long free response requiring the use of graphs

Unit 5: Monetary and Fiscal Policy Combinations (10 days) Key Terms: time lag, inside lag, outside lag, crowding-out, monetizing the debt, Phillips curve, long-run, short-run, economic growth, productivity, production possibilities curve, capital stock, monetarist, supply-side, rational expectations, demand-side, Keynesian, classical, neo-classical Graphical analysis using AD/AS model, Phillips curve, loanable funds and money supply and demand graphs Activities: 1.Morton Activities Macroeconomics, Activities 43-48 Reading: McConnell and Brue Chapters 16, 17, 18, 19 Assessment: Unit test with 20 questions multiple choice, 2 short answer and 1 long free response requiring the use of graphs Unit 6: International Economics(14 days) Key Concepts: absolute and comparative advantage, production possibilities curve, import quota, tariff, current account, capital account, balance of trade, balance of payments, foreign exchange, fixed and flexible exchange rates, monetary and fiscal policy in a global economy Activities: 1.Morton Activities Macroeconomics, Activities 49-55 Reading: McConnell and Brue Chapters 6, 37, 38, 39 Assessment: Unit test with 20 questions multiple choice, 2 short answer and 1 long free response requiring the use of graphs Unit 7: Review of Microeconomics and Macroeconomics(16 days) Studentswill review past exams and the class will discuss areas where students have had difficulty understanding the concepts.Graphing contests will be used to improve students ability to use graphs in analysis of economic situations. Unit 8: Personal Finance(5 days) Key Concepts: stock, bond, mutual fund, investing, saving, dollar-cost averaging, index fund, life cycle fund, expense ratio, load, retirements accounts, pension, IRA, Roth IRA, 401K, Roth 401K, 403B, bond rating, credit card, debit card, certificate of deposit, money market account, bull market, bear market, blue chip stock, penny stock, risk, return, liquidity Activities:

1.Investment Project- students will determine profit and losses incurred from investment choices in stocks and mutual funds made at the beginning of the school year Video2003: Video Library of Personal Finance, Nightly Business Report, Assessmentwill be graded for completing the investment project and: Students classroom discussion will be evaluated

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