AP Macroeconomics
Syllabus/Schedule
Course Description
AP Macroeconomics is a one-semester course designed to give students a thorough
understanding of the principles of economics that apply to an economic system as a whole.
The course places particular emphasis on the study of national income and price-level
determination, and also develops students’ familiarity with economic performance
measures, the financial sector, stabilization policies, economic growth, and international
economics. This course will help to prepare students for the annual AP Macroeconomics
Exam.
Textbook
Krugman's Economics for AP*, Paul Krugman, Robin Wells, David Anderson, Margaret Ray.
Worth Publishers, copyright 2011. Print: ISBN-13:9781429218276 eText: ISBN-13:
9781429271813
Contact Information
Instructor Information
Name:
Phone: 1-888-935-3614 x111
E-mail Address: @idla.k12.id.us
Office Hours:
Principal Information
Name:
Phone:
E-mail Address: @idla.k12.id.us
Office Hours:
Course Organization
The first item in each folder is a Unit Checklist. You will find that each unit's activities have been
broken down day by day to help you pace yourself.
Units of Study
This course will cover all topics (Basic Economic Concepts, Measurement of Economic
Performance, National Income and Price Determination, Financial Sector, Inflation,
Unemployment, and Stabilization Policies, Economic Growth and Productivity, Open
Economy: International Trade and Finance) suggested by the official AP Economics Course
Description. In order to make the course manageable for students within a semester, the
main topics have been divided into the following units.
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Unit 1: Basic Economics Concepts
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Unit 2: Basic Economics: Supply and Demand
Unit 3: Measurement of Economics Performance
Unit 4: National Income and Price Determination
Unit 5: Inflation, Unemployment, and Stabilization Policies
Unit 6: The Financial Sector & Stabilization Policies Continued
Unit 7: Open Economy: International Trade and Finance
Unit 8: Economic Growth & Combining Concepts
The AP Challenge
Advanced Placement offers to provide high school students the rigors of post-secondary education.
Interested students will find a vast array of challenges throughout the 18-week course, including
analytical study, research, and the development of fundamental process inherent at the collegiate level.
College Credit is given based on your scores earned on the College Board exam scheduled in May. The
exam consists of a 60 point multiple choice questions in 45 minutes (50% of the total) and four essay
questions in 100 minutes (50% of the total). You will receive a score from 1-5 with 5 being the highest
and 1 being the lowest. Most colleges will give credit for a “3, 4, or 5.”
Expectations
Of you, the student:
Each unit includes a schedule with due dates for the assignments; you are expected to keep
pace with the schedule, and to communicate with your instructor if you will be missing any
deadlines. Emergencies do happen; we can work around them if you communicate.
Whenever you have questions or difficulties, you should call or email your instructor right away.
That's what your teacher is here for! You also have classmates that you can collaborate with.
From your teacher:
Your instructor is here to help you! When you contact your instructor by phone or by email, you
can expect a response within 24 hours (and usually much faster than that), except at times
when an announcement has been posted in the class to say the instructor is temporarily
unavailable, such as on a brief trip.
You will be hearing from your instructor by phone during the first week of class, and by email
and phone throughout the class. You can also read your instructor's comments on your
assignments, by clicking on any underlined grade in your gradebook!
Success Strategies
In an online classroom, you have a little more leeway to work at your own pace, or at your own
"best times." Whether you're a morning person or a night owl, you can do your schoolwork at
the time of day when you work best!
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It is crucial, though, that you maintain the discipline necessary to get the work done! You can
work ahead, and you can work in the middle of the night, but you can't work late. Deadlines in
this course (especially the structured reading schedule) are here to keep you on track so you
can successfully complete this course. Your instructor won't be standing in front of your desk
glaring and tapping a foot when you get off-task. This job is yours to do.
Study and complete ALL assignments, skipping assignments can leave holes in your knowledge.
Study Advice
1. Preview the Performance Objectives. The lesson objectives are what you will be expected
to demonstrate.
2. Use the note-taking guides to take good, clear, and concise notes. Keep your note taking
guides close when you are reading your textbook and working with the other course
resources.
3. Pay careful attention to the graphs that you will need to learn how to draw and
manipulate. Each unit specifies the graphs you must be able to draw and explain. All graphs
must be correctly labeled.
4. Do all practice problems. These multiple choice and free response questions will help
with your understanding of economics and prepare you for the AP Exam in the spring.
5. If you have any questions, be sure to ask your instructor for clarification.
Policies
Late Work: IDLA is here for the common purpose of helping our students succeed. We believe
all students can learn. We also believe that accountability is a part of the learning process. With
that in mind, all work for each unit is due by the date listed on the course schedule. Check with
your teacher for details, but at a minimum, teachers will accept for at least 50% of value,
assignments that are submitted late.
Redo Policy: Many assignments can be redone for an improved grade. Please contact your
teacher for more information.
Drop Deadline: 16-week Courses: The IDLA office must be notified by Friday of the third week
of the course to receive a full refund and remove the student from the course.
9-week, 12-week, and Special Sessions: The IDLA office must be notified by Friday of the second
week of the course to receive a full refund and remove the student from the course.
After the drop deadline, grades will be reported for all students remaining in the course
regardless of completion.
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Grading Policy
Percentages: At the end of the course, your grade will be reported as a percentage. Your local
school determines, based on that percentage, your letter grade. The grade is made up
approximately of the following categories:
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Assignments - 20%
Quizzes - 20%
Exams - 40%
Final Exam - 20%
Checking Your Grades: You can check your gradebook at any time by using the "Check Grades"
menu button. In the gradebook, items are coded according to location and type. All graded
items begin with a U# (where the # is the number of that unit).
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Assignments, projects, and activities are designated with an "A" (U1A1 - is the first
assignment in unit 1).
Discussion boards are designated with a "DB"
Quizzes are designated with a "Q"
Tests are designated with a "T"
Final Exam: At the end of the course there will be a proctored (supervised) final exam. It is your
responsibility to schedule a time with the site coordinator at your local school to take this
exam. The site coordinator will have the password needed to open the exam, and will supervise
while you take the test.
Academic Integrity: It is expected that you turn in your own work. The Academic Honesty
Contract will review the definitions of honesty terms along with consequences if those terms
are not fulfilled. It is never okay to copy and paste.
Ownership of Materials: All ownership, copyrights, trademarks, and other rights in IDLA
courses shall remain with IDLA. Except as expressly authorized, students and schools using IDLA
courses do not have the right to sell, transfer, license or distribute IDLA courses in any other
format, context, manner, or means or for any other purpose not specifically authorized without
IDLA's prior written consent. All rights not expressly granted to the user are reserved to IDLA.
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Below is a table of topics covered in this course. Click the link for each unit to access a
detailed checklist of the topics and assignments for that unit.
Unit Topics
Objectives
1
Basic Economic Concepts
In Unit 1, you will learn about: Getting Started, Basic Economic Concepts,
Date
Production Possibilities Curve, Comparative and Absolute Advantage
2
Demand, Supply and
Market Equilibrium
In Unit 2, you will learn about: Demand, Supply, Market Equilibrium
Date
3
Business Cycle and
Market Influences
In Unit 3, you will learn about: Business Cycle, Circular Flow and GDP,
Inflation, Unemployment
Date
4
Aggregate Demand and
Supply
In Unit 4, you will learn about: The Multiplier and Income Expenditure,
Aggregate Demand, Aggregate Supply, Aggregate Demand & Aggregate
Supply Equilibrium
Date
5
Fiscal Policy, Inflation
and Unemployment
In Unit 5 you will learn about: Fiscal Policy, The Market for Loanable
Funds and Consequences of Fiscal Policy, Inflation and Unemployment
Date
6
Money, Banks and
Monetary Policy
In Unit 6 you will learn about: Money, Banks and the Creation of Money,
The Money Market, The Central Bank & Monetary Policy
Date
7
International Economics
and Trade Barriers
In Unit 7 you will learn about: Balance of Payments, The Foreign
Exchange Market, Trade Barriers
Date
8
Putting It All Together
In Unit 8 you will learn about: Economic Growth, Putting It All Together
Date
Final Exam Week
Dates
Date
Course Outline and Objectives
Unit 1: Basic Economics Concepts (2 Weeks)
1. Scarcity, choice, opportunity cost, and other basic economic concepts.
2. Production possibilities curve
3. Comparative advantage, absolute advantage, specialization, exchange
Performance Objectives:
*Explain what economics is.
*Explain the differences between a market and command economy.
*Explain the role incentives and property rights play in a market economy.
*Explain how marginal analysis helps people and society make choices.
*Explain the significance of the four economic resources.
*Explain what scarcity is.
*Explain what opportunity cost measures.
*Explain what a production possibilities curve can show.
*Identify areas on a production possibilities curve: efficient resource use, inefficient
resource use, and unobtainable production.
*Use the production possibilities curve to determine the opportunity cost for a respective
production choice.
*Identify and explain the difference between increasing and constant opportunity cost.
*Explain how the production possibility curve can show economic growth through an
increase in resource inputs or new technology
*Explain the difference between absolute advantage and comparative advantage.
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*Calculate and identify when a country has an absolute or comparative advantage.
*Explain how the concept of specialization can lead a country to trade for other goods.
*Identify which goods a country should specialize in and produce for trade.
Unit 2: Basic Economics: Supply and Demand (1 Week)
1. Demand
2. Supply
3. Market Equilibrium
Performance Objectives:
*Explain how the shape of the demand curve follows the law of demand.
*Explain the difference between a change in quantity demanded and a change in demand.
*Explain the factors or determinants that shift the demand curve.
*Explain the difference between substitutes and complements.
*Explain the difference between a normal and inferior good.
*Draw a demand curve on a correctly labeled graph.
*Explain the difference between individual and market demand.
*Explain how the shape of the supply curve follows the law of supply.
*Explain the difference between a change in quantity supplied and a change in supply.
*Explain the determinants or factors that shift the supply curve.
*Draw a supply curve on a correctly labeled graph.
*Explain the difference between individual and market supply.
*Explain the meaning of equilibrium, equilibrium price, and equilibrium quantity.
*Draw a correctly labeled supply and demand graph at equilibrium.
*Explain and illustrate the process of the market going from a shortage or surplus to
market equilibrium.
*Draw and use a correctly labeled supply and demand graph to determine new market
equilibrium prices or quantities based upon changes in demand, supply, or both.
Unit 3: Measurement of Economics Performance (2 weeks)
1. The Business Cycle
2. Circular Flow & GDP
3. Inflation
4. Unemployment
Performance Objectives:
*Explain what the components of the business cycle are.
*Explain what the business cycle models.
*Explain the business cycle's relationship with employment, inflation, and economic output.
*Explain what a circular flow diagram models. Be able to draw a circular flow model and explain the
components that make it up.
*Explain what GDP measures and how it is calculated.
*Explain the difference between real and nominal GDP.
*Explain what GDP is not able to measure.
*Explain what inflation is.
*Explain the difference between a real interest rates and nominal interest rates.
*Explain what the consumer price index and GDP deflator measure and use each to calculate
inflation changes over time.
*Identify types of people or businesses who benefit and suffer because of inflation.
*Explain what unemployment is.
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*Explain how unemployment is calculated.
*Explain why the unemployment rate is understated.
*Explain the difference in types of unemployment.
*Explain what the natural rate of unemployment is.
Unit 4: National Income and Price Determination (2 Weeks)
1. The Multiplier and Income Expenditure
2. Aggregate Demand
3. Aggregate Supply
4. AD/AS Equilibrium
Performance Objectives:
*Calculate and explain the difference between marginal propensity to consume and marginal
propensity to save.
*Calculate and explain what the multiplier does.
*Explain the relationship between marginal propensity to consume and the multiplier.
*Explain the role of the consumption function and the factors that can increase or decrease a
person's ability to spend their disposable income.
*Explain the factors that can increase or decrease investment for a firm.
*Explain what aggregate demand is.
*Graph and shift an aggregate demand curve.
*Explain why the aggregate demand curve is downward sloping.
*Explain the determinants, which will increase or decrease aggregate demand.
*Explain what aggregate supply measures.
*Explain the difference between the short run aggregate supply curve and the long run aggregate
supply curve. Discuss the role of sticky wages.
*Explain and graph how the determinants of short run aggregate supply can shift the short run
aggregate supply curve.
*Explain and graph how short run aggregate supply, based upon its potential output, will eventually
shift into long run aggregate supply.
*Explain what the AD-AS model does.
*Explain and graph how demand/supply shocks affect short-run macroeconomic equilibrium.
*Explain and graph long-run macroeconomic equilibrium when it has recessionary and inflationary
gaps in the short run.
*Explain and show (graph) how the economy in the long run is self-correcting.
Unit 5: Inflation, Unemployment, and Stabilization Policies (2 Weeks)
1. Fiscal Policy
2. Loanable Funds Market
3. The Phillips Curve
Performance Objectives:
*Explain what a stabilization policy is and how they attempt to work.
*Explain the difference between expansionary and contractionary fiscal policy.
*Graph and explain how various fiscal policies attempt to bring the AD-AS graph back to
long-run equilibrium.
*Explain how fiscal policy along with marginal propensity to consume can effect the
multiplier.
*Explain the difference between automatic stabilizers and discretionary fiscal policy.
*Explain the difference between debt and deficits.
*Explain what the loanable funds market is.
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*Explain the factors that shift the supply and demand for loanable funds.
*Graph the supply and demand for loanable funds market and show how interest rates
change and quantity of loanable funds change.
*Explain what crowding out is.
*Explain how expected interest rates affect nominal and real interest rates
*Explain and graph how interest rates are determined in the short and long run.
*Explain the relationship that the Phillips Curve represents.
*Draw and graph a short-run and long run Phillips Curve.
*Explain the relationship between changes on the AD/AS curves and how they relate to
changes on the Phillips Curve.
*Explain how inflation expectations affect the Phillips Curve.
Unit 6: The Financial Sector & Stabilization Policies Continued (2 Weeks)
1. Money
2. Banks and the Creation of Money
3. The Money Market
4. The Central Bank and Monetary Policy
Performance Objectives:
*Explain the difference between financial assets.
*Explain the three functions of money and how it is measured.
*Explain how the money supply is measured.
*Explain what present and future value measures.
*Explain what banks do.
*Explain the following terms: bank reserves, reserve ratio, excess.
*Explain how the process of fractional reserve banking works.
*Calculate, using the money multiplier the amount of money that can be generated
*Explain and graph the relationship between demand for money and interest rates.
*Explain the factors that can increase and decrease the demand for money.
*Explain why the money supply curve is vertical and what factors can shift it.
*Explain the relationship that the money market represents.
*Explain what a central bank does and what America's central bank is called.
*Explain the different policy tools that the Federal Reserve uses to increase or decrease the money
supply.
*Explain and graph how monetary policy can effect changes to the price level and output of an
economy.
*Explain the quantity theory of money.
*Explain the role that rational expectations have.
Unit 7: Open Economy: International Trade and Finance (2 Week)
1. Balance of Payments
2. Foreign Exchange Market
3. Trade and Restrictions
Performance Objectives:
*Explain what balance of payments measure and what is included in it.
*Explain the difference between current account, financial account, and how they relate to nations
running a balance of payments surplus or deficit.
*Explain the factors that can increase or decrease a currency's value.
*Graph the market for foreign exchange and show how the supply and demand curve can shift.
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*Explain what will happen to a nation's imports and exports based upon their currency valuation.
*Explain what types of trade barriers governments can use to protect domestic industries.
*Identify and explain who benefits from trade barriers and who suffers.
Unit 8: Economic Growth & Combining Concepts (2 Week)
1) Economic Growth
2) Putting Macroeconomic Events Together
Performance Objectives:
*Define what economic growth is.
*Explain what the different determinants of growth are.
*Discuss ways that an economy can grow.
*Explain and graph results from macroeconomic events.
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