AP Macroeconomics
Syllabus
Coach Tavani
Gregg_Tavani@gwinnett.k12.ga.us
Course Description:
The purpose of an Advanced Placement course in Macroeconomics is to give students a thorough
understanding of the principles of economics that apply to national income, price level
determination, economic performance measures, financial sector, stabilization policies, economic
growth, and international economics. Students will learn to manipulate a variety of graphing
models, and analyze the economic developments each represents.
Textbook: Mankiw, N. Gregory. Principles of Economics. 4th ed. Thomson-Southwestern,
2007.
Supplemental Material: Morton, John. Advanced Placement Economics: Macroeconomics
Student Activities, 3rd ed. New York: National Council on Economic Education, 2003.
- Activities from this workbook provide practice opportunities of concept application,
graphing, and analysis of economic impact of changes in society.
- Students work with charts, generate, interpret, graph, and analyze economic data to
explain economic concepts.
**I recommend that you buy an AP Reader such as 5 Steps to a 5 by McGraw-Hill!**
Websites:
- Google ‘Mankiw power points’ to access the power points from our textbook
- Youtube.com – look under ap macroeconomics; also, look under acdc ap economics
- usatestprep.com
- khanacademy.org
- www.Federalreserve.gov
- www.Federalreserveeducation.org
- www.Aplia.com
- www.collegeboard.com/student/testing/ap/about.html
- www.reffonomics.com
- www.welkerswikinomics.com
- www.councilforeconed.org
Grading:
25% Class assignments and quizzes
45% Tests
5%
Homework
20% Final Exam (End of Course Test- state mandated)
5%
Free response final exam
Make Up Work with an excused absence: The student will be given up to 5 days to complete
assignments given while absent. (An alternative assignment may be given, if answers have been
discussed in class.) Tests or assignments due on the day absent must be turned in or made up
immediately on return to school. An absence on a review day does not excuse a student from
taking the test on the day they return.
Incomplete: If a student has missed an assignment due to an absence, a grade of “0” will be
assigned in the place of that grade until the student makes up the work within the time allotted.
Cheating: A zero will be given to the student for the assignment involved. First offenses will
be handled by the teacher. Subsequent offenses will be referred to the administration.
Representing someone else’s work as your own is cheating. You are encouraged to study in
groups, but you must do your own work you turn in. No dividing to conquer.
Extra Help: I am available before school, after school, and during 4th period Lunch for extra
help.
Unit tests are composed of multiple choice questions that require analysis and application of all
key concepts in each of the following units:
 Basic economic concepts
 Measurement of economic performance
 National Income & Price Determination
 Financial sector
 Inflation, unemployment, and stabilization policies
 Economic growth and productivity
 Open economy and international trade
Course Outline and Assignment Schedule
Curricular
Requirements
Unit of Study
Unit 1: 10 days
Basic
Economic
Concepts
Concept Topic
Introduction to Economic
way of thinking
Scarcity: the nature of
economic systems
Choice, Opportunity costs,
Production possibility
curves (frontiers), tradeoffs
Business cycle
Lesson Activity
- Introduction to basic
economics concepts
- Discussion of scarcity
- Lecture: Efficiency
- Discussion: Choices &
analysis of opportunity
costs
- graphs: PPC
- Activity 1 Graphing
practice of the PPC to
demonstrate the concepts
of choice, and
opportunity costs.
- Whiteboards to draw &
label the business cycle
- Groups brainstorm
situations to cause a
change in the cycle
Percentage
Readings of AP
Exam
8-12%
Ch 1
Ch 2,
Pgs 24-26
Pg 13
Demand, supply, & market
equilibrium, price elasticity
of demand
Absolute advantage,
specialization, comparative
advantage & trade
Unit 2: 11 days
Measurement
of Economic
Performance
-Lecture: Concepts of
Ch 4 & 5
demand, supply &
market equilibrium
- Wheat market
simulation of supply and
demand concepts in a
free market
- Analysis & graphing of
simulation results
- Lecture: Curve Shifts
caused by determinants
of demand and/or
determinants of supply
-Lecture / demonstration:
Price elasticity of
demand
- Activities 3, 5, 7 & 8
- Lecture: Specialization Ch 3
& Comparative
advantage
- Activity 2
Unemployment, inflation,
economic growth
Group discussion:
- Definitions of
unemployment, inflation
& economic growth
- Through graphing
introduce the AS/AD
model.
- Analyze the impact of
unemployment &
inflation on the
community and their
lives
Pg 12-13
National Income Accounts
Circular Flow
-Lecture: Introduction to
macroeconomics, GCP
and economic
measurements
- Activity 11
- Activity 12 application
of C + I + G + net
exports
-Graphing and written
assessment to explain the
economic impact of a
change in one component
of GDP
- Lecture: Real v.
Nominal GDP
Ch 23
Pgs 507509
12-16%
Gross Domestic Product
(GDP) and its components:
C + I + G + net exports
Real v. Nominal GDP
Pgs 510515
Pgs 516519
- Discussion on the
impact of inflation and
deflation on the GDP.
Inflation measurements and - Auction to demonstrate Pgs 520adjustments: Price indices, inflation
524
- Video: Economics
Ch 24
USA: Inflation
- Lecture: inflation
- Lecture: price indices
- Discuss formulas
- Activity 13 practice
application of price
indices and inflation
- Lecture and
demonstration of
contractionary and
expansionary gaps
- Graphing and written
assessment to analyze
and explain the economic
impact of inflation.
Differences between
nominal and real
Costs of inflation, cost of
living
- Activity 15 scenarios
require students to apply
the concept of
unanticipated inflation
and its costs
Ch 24
Pgs 675681
Unemployment: Definition, - Lecture:
Ch 28
types, and measurement
Employment/Unemploy
ment: definitions, types
Natural rate of
and measuring
unemployment
- Activity 15:
Unemployment
-Graphing and written
assessment to analyze
and explain the economic
impact of changes in the
GDP on unemployment
Unit 3: 15 days
National
Income &
Price level
Determination
10-15%
National income and price
level determination
Multiplier effect
- Lecture: Introduction to
national income and
price level determination
using income and
expenditure approaches.
Application of C + I + G
+ net exports indicate
economic changes.
- Activities 20, 21, 22
Practice with MPC,
Pgs 787790
Aggregate demand:
determinants
Crowding-out effect
Aggregate supply:
determinants:
Flexible wages & prices
Aggregate supply: shortrun & long-run analyses
Sticky wages & prices
MPS, and multiplier
effect
- Video:
Pgs 749Macroeconomics:
750
Aggregate demand
- Lecture: Aggregate
demand
- Discussion: connect
AD with changes in GDP
components.
- Activity 23: graph and
explain the effects of
aggregate demand shifts
- Lecture: crowding out
790-792
- Graphing practice using
the AS/AD model to
show crowding out
- Video:
Pgs 752Macroeconomics:
755
Aggregate Supply
Lecture: Aggregate
supply
- Group analysis &
graphing practice on
Activity 24
- Activity 25, 26
Analysis of wage and
price changes
- Free response practice
analyzing the results of
aggregate supply shifts
using whiteboards
- Activity 28: Practice
with short-run and longrun aggregate supply
changes
- Activity 29
-Graphing and written
assessment to analyze
and explain the economic
impact of changes in
aggregate supply, and /
or demand
- Lecture and
demonstration of sticky
wages & sticky prices
- Practice on whiteboards
scenarios & graphing of
Pgs 739756
Pgs 739756
Pgs 755759
sticky wages and sticky
prices
- Analyze why each
occurs, and the resulting
impact on the economy
Unit 4: 15 days
Financial
Sector
15-20%
Money: definition of
money, stocks & bonds
(financial assets)
Present & future value of
money
Measures of money supply
Banks: creation of money
Money demand & money
market
Loanable funds market
Central bank and control of
the money supply
Monetary policy tools:
Central bank (Federal
Reserve Bank)
Quantity theory of money
- Lecture: Money and the
money market
- Video: Economics
USA: Monetary Policy
- Group discussion of
Activity 34 & 35 on
definition of money, and
M1, M2, M3
- Discussion of how
banks create money,
graphs demonstrate
changes
- Activity 37 & 38
Expansion of checkable
deposits via use of the
money multiplier
- Activity 39 Analyze the
impact of the change in
money demand on the
interest rate in the money
market.
- Lecture: impact of
deficit spending on the
loanable funds market
- Graph activity to
analyze the impact on
interest rates from the
change in money demand
on the loanable funds
market
- Lecture: The role of the
central bank and the US
Federal Reserve System
- Small group discussion:
What is the central
bank’s dilemma in
monetary policy?
- Activity 40
- Activity 42 Monetary
policy analysis and
graphing. View the
short-run and long-run
impact on the economy.
-Graphing and written
Ch 26
Ch 27
Ch 26
Ch 26
Pgs 584586
Ch 29,
Pgs 662 667
Pgs 665670
Nominal v. real interest
rates, Fisher Effect
Unit 5: 22
Inflation
Public policy effects on the
economy
Fiscal and monetary policy
Unemployment
Stabilization
Policies
Demand-side effects
Supply-side effects
Impact of combining fiscal
& monetary policies
Impact of government
deficits and debt
assessment to explain the
economic impact of
changes in the stock of
money implemented by
the FED
- Activity 41 Analytical
practice with real and
nominal interest rates
Pgs 673674
20-30%
-Activity 30: Tools of
fiscal policy
Activity 31: Analyze the
difference between
discretionary and
automatic fiscal policy
-Activity 32: Graph and
analyze the impact of
fiscal and monetary
policy to stabilize the
economy by reducing
inflation or
unemployment.
-Graphing and written
free response assessment
to analyze and explain
the economic impact of
stabilization policies on
inflation, unemployment
-Video: The Standard
Deviants:
Macroeconomics,
Demand side
-Video: The Standard
Deviants:
Macroeconomics, Supply
side
- Activity 43 Monetary
and fiscal policy
application
- Activity 45 Analyze the
impact of the
combination of fiscal and
monetary policies
- Discuss the Classical
economists view of selfcorrecting of an
economy.
- Group discussion of
crowding out and
Ch 30,
Pgs 787
Pgs 778787
Pgs 790792, 170
Ch 6 &
Pgs 581584
Pg 588592
Types of inflation:
Demand-pull & Cost-push
The Phillips curve: Shortrun, long-run
Role of expectations
Unit 6: 5 days
Economic
Growth and
Productivity
graphing application
with Activity 44
- Lecture on the causes
of inflation and the
graphs to demonstrate
demand-pull and costpush inflation.
- Lecture: The Phillips
curve
- Activity 46 Analyze the
relationship between
changes in inflation and
unemployment and
economic growth in the
short-run, and long-run
using the Phillips curve,
and the AS/AD models.
Analyze the impact of
consumer expectations
on inflation
-Video: Economics USA:
Stabilization Policies
Ch 35,
Pgs 814816
Pgs 802813
Pgs 816824
5-10%
Impact of investment in
human & physical capital,
and research &
development
Economic Growth Policy
Unit 7: 7 days
Open Economy Balance of payments
International
account: balance of trade,
trade
current & capital accounts
Net exports and capital
flows
- Activity 47: discovery
and application of
economic growth and
productivity
- Lecture: Economic
growth and public
policies
- Graphing and written
free response assessment
to analyze and explain
the economic impact of
investment in human,
physical capital, research
and development and
increases in technology
on the production
possibilities curve.
Pgs 554558
- Lecture: Explanation of
concepts of open and
closed economies,
analyzing charts and
graphs showing balance
of payments accounts
- Activity 52 practice
with T charts to
understand the concept
Ch 31
Pgs 558570
10-15%
Foreign exchange market:
Supply & demand,
exchange rate, currency
appreciation/depreciation
Link financial and goods
markets, trade restrictions
Domestic policy impact on
international finance
of double entry
bookkeeping used in the
application of balance of
trade, current accounts,
and capital accounts
- Lecture: International
exchange market and
fluctuating currencies
Ch 31,
Pgs 701710
- Lecture: International
Ch 32
trade, tariffs, and quotas
-Activity 49 Review of
comparative advantage
- Activity 50 Economic
efficiency and gains from
trade
- Activity 51 graphing
practice to demonstrate
the economic impact of
barriers to trade
- Assessment to link of
central bank money stock
changes to interest rates
of one country to
currency exchange rates
and trade for a second
country.
- Activity 54 graph and
Ch 32
analyze how monetary
and fiscal policies affect
exchange rates
- Activity 55 graph and
analyze the relationship
between changing value
of currencies, changing
tariffs, and domestic
inflation on exchange
rate and trade
-Graphing and written
free response assessment
to analyze and explain
the economic impact of
domestic financial events
on international finance
and trade