Syllabus AP Economics
Macroeconomics and the Free Enterprise System
Semester course, 18 weeks, M-F, 7 periods
Text:
McConnell, Campbell R. and Stanley L Brue
Economics: Principles, Problems, and Policies
McGraw-Hill/Irwin: 15th Edition, 2002
ISBN: 0-07-234036-3
Student Reader:
Bucholtz, Todd G.
New Ideas from Dead Economists: An Introduction to Modern Economic Thought,
Plume, Penguin Group: 1990
New York, New York
ISBN: 0-452-26533-9
Activities Manual:
Morton, John S. and Rae Jean B. Goodman
Advanced Placement Economics: Macroeconomics
National Council on Economic Education: 3rd Edition, 2003
ISBN: 1-56183-567-6
Course Plan
Unit 1 – Introduction / Basic Economic Concepts, Chapters 1, 2,3 – 2 weeks
Scarcity, Opportunity Costs, Factors of Production, Supply and Demand Laws,
Curves and Determinates, Equilibrium Price and Quantity, Ceilings, Floors, Basic
Circular Flow Models, Production Possibility Frontiers, Basics of Business
Cycles, Inflation, Macro vs. Micro, Ceteris Paribus, “Full Employment”,
Efficiency, Substitute Goods, Complementary Goods
Unit 2 – Business Types, Market Types, Market Strategies, Chapters 4, 5 – 1 week
Sole Proprietorship, Partnership, Corporation, Perfect Competition, Monopolistic
Competition, Oligopoly, Monopoly, Marketing Assumptions, Major Advertising
Types, Spillover Benefits, Spillover Costs
Unit 3 – National Income Accounting, Chapter 7 – 3 weeks
GDP, GNP, NNP, NI, PI, DI, Consumption and Savings, Inflation, Nominal vs.
Real, Intermediate Goods, Expenditure Approach to GDP, Income Approach,
Gross vs. Net, Formulas from GDP to DI, CPI, Per Capita
Unit 4 – Growth and Business Cycles, Chapter 8 – 1 week
Rule of 70, Productivity, Components and Patterns of the Business Cycles, Types
of Unemployment, Unemployment Rates, Okun’s Law, GDP Gap, Rates of
Inflation, Demand-Pull, Cost-Push, Nominal Income vs. Real, Unanticipated
Inflation, Aggregate AS/AD Model introduction
Unit 5 – Aggregate Models, Chapters 9, 11 – 3 weeks
Consumption and Savings Schedules, APC, APS, MPC, MPS, Nominal Interest
Rates, Real Interest Rates, Investment Demand Curves, Aggregate Demand and
Curves, Aggregate Supply and Curves, Determinates of AD and AS, Productivity,
Multipliers
Unit 6 – Fiscal and Monetary Policy Options, Chapters 12, 13, 29 – 3 weeks
Employment Act of 1946, Fiscal Policy Options, Fed Policy Options, Monetarist
Analysis and Reactions, Supply Side-Neo Classical Options, Crowding Out
Effect, Value of Money, Money Creation, M1, M2, M3, Money Supply, Fed
Powers, FOMC, Countercyclical goals, Loanable Funds Market, Private Bonds
Market, Fed Fund Rates
Unit 7 – Banking and Money Multipliers, Chapters 14, 15, 16, 17, 18 – 1 week
Reserves, Excess Reserves, Reserve Ratio, Liquidity, Easy Money, Tight Money,
Short Run AS, Long Run AS, Phillips Curve SR, Phillips Curve LR, Laffer
Curve, Rational Expectations School
Unit 8 – International Trade, Chapters 6, 17, 37, 38 – 2 weeks
Export and Import Trends, Trade Surpluses and Deficits, Tariffs Plus and Minus,
Most Favored Nations, WTO Growth, Free Trade Basics, Non-tariff Barriers,
Multinationals, Currency Values and Exchanges, Dollarization, Balance of
Payments Systems, Remittances, Domestic Policy Connections to Trade,
Comparative Advantages, Currency Exchange Graphs, Current Accounts, Capital
Accounts
Additional Assignments
Readings and Chapter Quizzes from New Ideas from Dead Economists
Macroeconomic Graphing
State Mandated Personal Finance Section, Playbook for Life
US and World Stock Markets
IRS Taxes and 1040 forms
State and Regional Economics
Assessments
Chapter tests are taken from the publisher’s bank of recommended questions as well as
adapted questions from past years AP tests, phrased in the same style as the College
Board AP test. Most tests will contain 40 to 50 questions during one (1) class period.
Daily grades will include reading quizzes, graphing problems, sample “free-response”
questions, and workbook activities. The free response questions will also come from
older versions of the College Board AP test.
According to school policies, the overall grade will be weighted 80% major grades / 20%
daily grades in accordance to all other AP courses in the Social Studies Department.
Each nine weeks will contain a minimum of 4 major grades and 8 – 10 daily assignments
Class:
Teacher:
AP Macroeconomics
Coach Owens
Behavior Expectations
1.
2.
3.
4.
Be on time in your seat with all appropriate materials ready to learn.
Treat every member of the class respectfully.
Follow all guidelines in the student code of conduct.
Be the best version of yourself.
Honor Code
This class must be able to operate free from all distractive and disruptive elements. In an
effort to display the best in society and in myself, I agree to follow and obey the rules for
the school and this classroom for the entire duration of the class. I hereby pledge that I
will not lie, cheat or steal nor will I tolerate anyone who does.
Respect and Responsibility will be my most important virtues.
Signature
Printed Name
Date and Class Period