ADVANCED PLACEMENT MACROECONOMICS
Mrs. Chacon- De Armas
Course Overview
AP Macroeconomic is a college level semester course in which student will encompass both the
general and specific concepts of the principles of economics that apply to an economic system as a
whole. This course will emphasizes economic growth, financial market, stabilizing policies , economic
performance measures, national income, and international economics. Though out this course there
will be extensive use of charts, graphs, and statistics for you to interpret and analyze the impact of
policies in economics.
TEXTBOOK
McConnell, Campbell and Stanley Brue. Macroeconomic 16th eds. New York : McGraw Hill .
c2003 (provided)
SUPPLMENTAL RESOURCES
TEXTBOOK
Krugman, Paul and Robin Wells. Macroeconomics. New York: Worth Publishing.c2005
Taylor, John . Principles of Macroeconomic 5th eds. Boston : Houghton Mifflin c2005
WORKBOOK
Morton, John. Advancement Placement Economic Macroeconomics student Activities,
3rd ed. New York: National Council on Economic education, 2003 ( provided)
How to Prepare for the AP Microeconomic/Macroeconomics Advanced Placement
Examination. Frank Musgrave and Elia Kacapyr, authors. Barron’s Educational Series
(provided)
Additional readings
Wall Street Journal
The Economist
Other Magazine and newspaper articles
Course Objectives
1. Explain the fundamental economic concepts such as scarcity, opportunity cost and supply and
demand.
2. Demonstrate an understanding of the measurements of such as GDP, unemployment and
inflation.
3. Analyze the impact of economic fluctuation on the economy’s output and price level.
4. To understand Monetary policy how the Fed performs and implement policy and its effects on
real output growth.
5. to understand the public policy affects on economy outputs, price levels and level of
employments both short-run and long-run.
6. Explain the role of productivity in raising real output and standard of living and its impact on
long-run economic growth on the economy.
7. Examine the effects of trade restrictions, international payment system impact on trade and
how domestic policy action affect international finances
Expectation
Students participating in this program will be expected to take the College board test for AP
Macroeconomics in May, 2010
Students must also understand that there will extensive supplemental readings. Therefore, time
management, organization and attendance will play a key factor in the success of this program.
Computer knowledge and access to the internet will be needed during this course. Student may
used the school library which is available during evening hours, public libraries and e- Library in
the local area.
Students will have an understanding of macroeconomics and will discover an understanding of
domestic and global economy especially with policy making
Suggestions for Success
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Read the textbook including chart , graphs or other visuals activities
Keep up with current economic scenarios and policies both domestic and global
Don’t forget the basics: vocabulary, focus questions, writing skills
Form a study group
Good attendance
Time management
Suggested Website
www.reffonomics.com
www.bls.gov
www.ncee.net
www.econedlink.org
* other topic related websites will be suggested during the course.
CONTACT: chacond@dadeschools.net
or 305-822-1500 ext. 2493
Attendance
1. Student with more than 5 unexcused absences will receive a NO CREDIT for a semester
course.
2. Continuous tardy will result in detentions
3. Make-Up: If you are absent for 1 class you are expected to turn in make-up
assignment
next class with an excused absence note.
4. When you return from an absence expected to immediately turn in any assignments
due from the absent date.
Supplies
You will need to have at least 2 “ binder, a three-hole puncher, loose leaf paper, 10 dividers,
Notebook with one subject area. All assignment will be written in blue or black pen. Highlighters
will be helpful.
Divider 1 Course information
Divider 2-8 the titles of the 7 Units in Macroeconomics
Divider 9
Collection of Graphs
Divider 10- AP review
Assignments
Journal
The journal will consist of three parts.
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The first part will be classroom journal entries will reflect the topic of the day, relate
to readings or review material.
The second portion will consist of weekly current event using a national
newspaper, journal or economic magazine. You will write a summary of the article
identifying the relationship to the economy. The following are suggestion.
The third portion will consist of a collection of graphs, tables, charts or political
cartoons referring to 7 units in Macroeconomics
Newspapers Wall Street Journal ,New York Times, USA Today
Magazine: The Economist, Business Week , etc….
Summer reading
Each summer student will receive a summer reading project. They will research various
economic topics using many primary resources presented thought government agency
chart and data such as the BLS, The Federal reserve system GOFRED. This assignment will
always be due the first day of the new school year
Home Work Assignment
Student will be responsible for reading the chapter prior to arriving in class. Students will also
receive a chapter review sheet including the following : vocabulary , reading focus questions,
discussion questions , data and chart interpretation , critical writing activities and weekly
research topic.
Research Papers
A variety of writing assignments will be given to assess student understanding of material
and as practice for the writing requirement for the AP exam, such as timed writing .
Sample topics
Heilbroner, Robert. The Worldly Philosophers: The Lives, Times and Ideas of the Great Economic
Thinkers
1) Create a booklet for each philosophers
2) Compare and contrast 2 philosophers
3) Research 10 articles relating to economy theories related in this book- write
abstract and relationship
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Two Topic Paper using APA format one per nine weeks consisting of 6 -8 pages ,
footnotes and bibliography. Topics will discussed at a later date.
Presentations
 Power point presentation of topics such as:
Monetary Policies vs fiscal Policies
The Fed
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Skits, puppet show or video on an economic concept
Examination
The AP exam
70 minutes multiple choice section and 60 minutes free-response section with a mandatory 10 minute
reading to be able to write notes, sketch graph and planning and 50 minutes writing . Questions will
included content as well as graphical analysis
Course test and Unit Test
Student will taking the following types of exam
 Chapter test consisting of about 30 to 50 multiple choice questions and FreeResponse Questions.
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Essay Exam- 4 free response essay with rubric or position paper in class
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Unit Exam- college- board style with 60 multiple choice and 4 free response with
a rubric
Grading Policies
Will use the school board grade scales for letter grades and percentages
Double or triple score weight
Unit Exams
Chapter Tests
Essay Writing
Presentation
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single or double weight
Class work
Quizzes
Journal Assignments
Homework Assignments
Participation
No work will be accepted late without valid excused absence.
Long term Projects will have a 15 point deduction with a valid excused absence. These project
can be turned in a week earlier.
Participating in an activity such as i.e. field trip, club function, college fair or sporting event
in which you leave during the school day all homework must be turned in before
departure. It will not be accepted late.
Participating in an activity in which you will absent for an extended time period a DUE
DATE for assignment will be issued. If you do not complete assignments by the established
due date, assignments will not be accepted.
Academic Integrity
All students will be held to the highest standards of
academic integrity. Violation of these standards will be subject
to punishment including loss of credit on any
assignment!!!!!!!!!
AP
MACROECONOMIC OUTLINE AND ASSIGNMENTS
UNIT I : Basic Economic Concepts (2 weeks)
Purpose:
The purpose of this unit is for student to be will be provided a foundation of the fundamental
understanding of the concept of macroeconomics. Student will be introduce to economic concept of
scarcity , trade-off and opportunity cost. The will able to distinguish between absolute and comparative
advantage and its impact on trade between individuals and countries. Student will understand the
differences of functions and policies of economic systems. Students will be able understand supply
and demand are how they are used to analyze the workings of a free market economy. This unit will
also explore the dynamics of the business cycle and influence of unemployment, inflation and economic
growth.
Outline:
Unit I : Basic concept
a.
b.
c.
d.
e.
Scarcity, choice and opportunity cost
Production possibilities curve
Comparative advantage, absolute advantage, specialization and exchange
Demand , supply, and market equilibrium
Macroeconomic issues: business cycle, unemployment , inflation and growth
Resources
Textbook:
McConnell Chapter 1,2,3,6
Video Resources :
Economic U$A – Resources and scarcity: What is economics all about?
Paul Solomon video for McConnell, Brue Chapter 1,2,3,6,
Workbook
Morton –
Lesson 1- Scarcity, Opportunity Cost, Production Possibilities and
Comparative advantage
Lesson 2 demand
Lesson 3 Supply
Lesson 4 Equilibrium Price and quantity
Lesson 5 Elasticity
Graphs :
Production Possibilities
Demand and supply Curve showing equilibrium, showing shifts in demand and
supply
Unit II: Measurement of Economic Indicators (3 weeks)
Purpose:
In this unit student will introduced to the circular flow of income and product One of the concept
introduce in this section is gross domestic product. It will be important to understand what it is how it is
measured and to able to distinguish between real and nominal gross domestic product. Another concept
will be unemployment. Student will able to understand the causes of unemployment, the cost of
unemployment and how unemployment rate is determined . student will also understand factors
affecting unemployment and the measurement of natural rate of unemployment. In this unit inflation,
price indices such as CPI and gross domestic product deflator will be introduced . Students will be to
understanding how indices are constructed and used to convert nominal values into real values.
Outline
II: Measurement of Economic Performance
a. National income accounts
1. Circular flow
2. Gross domestic product
3. Component of gross domestic product
4. Real versus nominal gross domestic product
b. Inflation measurement and adjustment
1. Price indices
2. Nominal and real values
3. Cost of inflation
c. Unemployment
1. Definition and measurement
2. Types of unemployment
3. Natural rate of unemployment
Resources
Textbook:
McConnell Chapter 7,8
Video resources:
Economic U$A- what is GNP?
Solomon Video- Chapter 7 , 8
Workbook
Unit 2 Morton activities 12-17
Lesson 1 Macroeconomic and Circular Flow
Lesson 2 Macroeconomic Goals and GDP
Lesson 3 Price Index and inflation
Lesson 4 Unemployment
Lesson 5 Business cycle
Graphs
Circular Flow of economic Activity
Business Cycle
Unit III : National Income and Price Determination(3 weeks)
Purpose:
The units will introduced aggregated supply and aggregated demand and how it determines
equilibrium of national output and price levels. Students will be able to analyze the impact of
economic fluctuations on the economy’s output and price level in the short run and the long run.
In this unit there will be extensive study of aggregated demand components of consumption,
investment, government spending and net exports and will examine aggregate demand curve slope
downward and how changes in the determinants affect aggregated demand curve. Student will be
introduced to spending-multiplier concept and the impact of crowing out . student will
understand the importance of sticky-price and sticky-wage models and their implication on
aggregated supply curve in comparison to flexible price and wages
Outline
National Income and Price Determination
A. Aggregated demand
1. Determinants of aggregated demand
2. Multiplier and crowding –out effects
B. Aggregate supply
1. Short-run and long-run analyses
2. Sticky versus flexible wages and prices
3. Determinants of aggregate supply
C. Macroeconomic equilibrium
1. Real output and price level
2. Short run
3. Actual versus full employment output
4. Economic fluctuation
Resources
Textbook :
McConnell Chapter 9, 11
Video resources
Economic U$A- Supply creates it own demand
Solomon video- Chapter 9 and 11
Workbook
Morton Activities 20-29 Unit 3 Aggregate demand and Aggregate Supply:
fluctuations in outputs and Prices
Lesson 1 Keynesian Model
Lesson 2 Investments
Lesson 3 aggregated demand
Lesson 4 Aggregated supply
Graphs:
Lesson 5 Short-run equilibrium
Lesson 6 Aggregate supply and Aggregate demand Analysis continued
Lesson 7 Long run Economy
Investment Curve
Aggregate demand and short-run aggregate supply curve
Aggregate demand and long-run aggregate supply curve
Unit IV: Financial Sector(3 weeks)
Purpose:
In this unit student will understand how monetary policy is determine and implemented.
Students will be introduced to what is money supply and money demand and what
factors affect each one. Students will understand how the Federal reserve functions and
implements monetary policy. They will also be able understand and define money,
financial assets such as stocks and bond, measure money supply and the value of money .
It is important to introduce multiple- deposit expansion, money creation using T- accounts
and use money multiplier. Understanding on of money supply and money demand is
important to investigate how equilibrium in the money market determines the equilibrium
of interest rates. Student will understand the quantity theory of money, distinguish
between nominal and real interest rate , identify tools of banking policy and this impact on
money supply and interest rate
Outline
IV: Financial sector
a. Money, banking and financial markets
1. definition of financial assets- money, stocks, bonds
2. Time value of money( present and future value)
3. Measures of money supply
4. Banks and creation of money
5. Money demand
6. Money market
7. Loanable fund market
b. Central bank and control of the money supply
1. Tools of central bank policy
2. Quantity theory of money
3. Real versus nominal interest rate
Unit 4
Textbook:
McConnell Chapter 13,14,15,29
Video resources:
The Fed today
Solomon :Chapter 13,14,15,29
Workbook:
Morton : Activities 34-39 Unit 4 Money, Monetary Policy and Economic
Stability
Lesson 1 Money
Lesson 2 equation of exchange
Lesson 3 Financial intermediaries
Lesson 4 the federal reserve system and its tools
Lesson 5 Money Market and Monetary Policy
Graphs:
Lesson 6 Interest rates and Monetary policy in the Short Run & Long
Run
Money market
Loanable funds Market
Investment demand Curve
Unit V: Inflation, Unemployment and Stabilization
Policies
(3 weeks)
Purpose:
In this unit the implementation of public policy will be studies. Public policy will affect an
economy’s output, price level, level of unemployment in the short run and long run. Student will be
able distinguish between monetary and fiscal policy and understand their interaction. This unit
track short-run and long-run effects on supply shocks, introduction of the Phillips curve to help
students understand inflation-unemployment trade-off and how these trade-off may differ in the
short and long run. Student will understand the impact of and economic effects of government
budget deficits, crowding out, national debt and explore the relationship of between deficits, interest
rate and inflation.
Outline:
V: Inflation, unemployment and Stabilization policies
a. Fiscal and monetary policies
1. Demand-side effects
2. Supply side effects
3. Policy mix
4. Government deficits and debt
b. Inflation and unemployment
1. types of inflation
a. demand pull inflation
b. cost-push inflation
2. the Phillips curve: short run versus long run
3. Role of expectations
RESOURCES
Textbook:
McConnell Chapter 12,15,16,18
Video resources:
Solomon Chapter 12,15,16,18
Workbook
Morton Activities 43-46 Unit 5 Monetary and fiscal Policy Combinations:
stabilization Policy
In the Real World
Lesson 1 Policy Lags and Crowding out Effects
Lesson 2 Monetary an Fiscal Policy Interact
Lesson 3 Phillips Curve and stabilization policy
Lesson 4 Economic Growth
Lesson 5 Macroeconomic theories
Graphs:
Aggregated demand/supply model
Phillips Curve
Unit VI: Economic Growth and Productivity
(1 week)
Purpose:
In this unit student will understand the role of productivity in raising real output and the standard of
living. They will also understand the role of investment in human capital and physical capital,
research and development and technical progress in raising productivity. Student will understand
how public policies influences the long-run economic growth of an economy
Outline
VI: Economic Growth
A. Investment in human capital
B. Investment in physical capital
C. Research and development and technological progress
D. Growth policy
Resources
Textbook:
McConnell Chapter 17
Video resources:
Solomon Chapter 17
Workbook:
Morton Activities 47
Graphs:
Production Possibilities
Aggregate demand/supply model
Unit 7: Open economy; International Trade and
Finances
(1 Week)
Purpose
In this unit student will have an understanding of the how open economy interacts with the world in
goods market and financial markets and understand trade balance, distinguish between current account
balance capital account balance and transaction and balance of payment accounts. This unit focus on
foreign exchange market and examine how the equilibrium rate is determined. Student will have an
understanding of how market forces and public policy affect currency demand and supply and
appreciation and depreciation of currency . They will have an understanding of how capital flow affect
exchange rated , depreciation or appreciation of currency affect country’s net exports. They will also
studies trade restrictions and the impact on the economy and how international payment system help or
hurt trade and how domestic policies affect international finance and trade
Outline
VII: Open Economy: International Trade and Finance
a. Balance of payments accounts
1. Balance of trade
2. Current accounts
3. Capital account
b. Foreign exchange market
1. Demand for and supply of foreign exchange
2. Exchange rate determination
3. Currency appreciation and depreciation
c. Net exports and capital flows
d. Links to financial and good markets
Resources
Textbook :
Video:
Workbook:
Graph:
McConnell Chapter 6,37,38
Solomon Chapter 6,37,38
Morton Activities 49-55 Unit 6 International Economic
Lesson 1 International trade
Lesson 2 Government Intervention in International trade
Lesson 3 International Finance
Lesson 4 Monetary and fiscal Policy in a global economy
Production Possibilities
Foreign Exchange Market