AP Macroeconomics
Fall 2014
Mrs. Allison Powell
Central Magnet School
Phone: 615.904.6789 ext. 23341
Email: powella@rcschools.net
Course Description:
Most students think that economics is about the circulation of money, businesses, and personal
finance. While subjects in economics deal with these issues, the study of economics is much
more than that. It is the science of decision-making. According to Gary Becker, “Economics is
the art of making the most out of life.” To economize means to get the most “bang for your
buck,” although the decision may not involve money. When we study individual decisionmaking (whether or not to buy a shirt at a given price, for example), we are concentrating on
microeconomics. Although we will learn essentials of economics that include some micro
themes, our class focuses on macroeconomics, which emphasizes economic principles as they
apply to an economic system as a whole. It is important to understand that economics is an
applied mathematics course. As such, many economic principles are best understood using
graphs, and the AP Macroeconomics exam requires students to solve problems using formulas
without the use of a calculator.
Textbook: Ray, M., & Anderson, D. (2011). Krugman's economics for AP*. New York: Worth.
Supplies: 3-ring binder with at least 3 sections (Notes, Graphs, FRQs), paper, pencils and pens,
highlighter, notes, 20 sheets of cardstock, textbook
Make-up Policy: Any student who is absent has five days to complete missed work. Make-up
work is the student’s responsibility. The returning student should not come directly to the
instructor for make-up activities until first consulting the course website and not during
instruction. If a student misses a graded assignment, then he or she must reschedule with the
instructor as soon as possible. A student’s incompletion of graded make-up work after five days
will result in a zero for that particular assignment. Any student missing class for a school-related
activity must schedule an alternate plan with the instructor beforehand. Approaching the
instructor after the fact and claiming innocence or ignorance is unacceptable and will ultimately
result in loss of total credit.*Exams and quizzes missed may be altered from the class version.
Some assignments may be accepted late for partial credit. However, once we go over an
assignment, you will not be able to turn it in late.
Review Sessions: All students are expected to take the AP exam in May. Since this course ends
in December and the AP exam is in May, it is imperative that all students who register for the
exam, attend review sessions in late April/early May.
Student Evaluation:
Participation
Students will be expected to participate in activities and class discussion and to fill in a notes
outline. A note outline for each unit will be provided before the beginning of each unit.
Students are expected to print or hand copy the notes for the unit before the first day of the unit.
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This will save us valuable class time, and it will allow students to more easily process the
information than if they were focused on taking notes during class. Failure to bring your notes to
class will result in a lower participation grade. Students will not only be graded upon the
frequency of their participation but also upon the depth of analysis given in their responses. The
instructor will keep track of students’ responses in order to determine their grades.
Assignments
Classwork and homework will be assessed in this category.
Quizzes
You will have frequent quizzes in our class. If a student does not perform to his/her expectations,
remediation assignments for further study posted on my website should be completed.
Exams
Two or three unit exams will be administered each grading quarter. In order to better prepare for
the AP exam, these exams will be comprised of multiple choice and FRQ questions from College
Board resources. All exams will be cumulative, meaning that questions covering previous units
will be on each exam. Even if you are exempt from the final exam, you will take a full length AP
practice exam at the conclusion of the semester.
Behavior Expectations:
As this is a college-level course, all students are expected to behave as such. A respectful
attitude toward the instructor and classmates is expected. Also, students must take ownership of
their learning by asking questions if necessary. The instructor will be available during the 5th
period 25 minute study hall or after school as needed. Academic dishonesty including but not
limited to cheating on a test, copying homework, and plagiarism will not be tolerated. It will
result in a “0” on the assignment related to the offense for all parties involved in cheating. The
use of electronic devices for classroom purposes is highly encouraged. However, misuse will
result in a prohibition of electronic devices in class for the offending student.
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Course Timeline:
1st Nine Weeks
Unit 1: Basic Economic Concepts
1. What is the science of economics? What is scarcity? How is it related to the discipline of
economics?
2. What is the difference between macro and micro?
3. What is the difference b/wn opportunity costs and tradeoffs?
4. What are the four major factors of production, and how do they relate to income?
5. How do the 3 major economic systems seek to answer the 3 basic economic questions?
6. How does the production possibilities curve demonstrate opportunity cost, growth, and
efficiency?
7. How do you compute comparative advantage and terms of trade?
8. What is the difference between a change in demand and a change in quantity demanded?
9. What are the factors that will change demand?
10. What is the difference between a change in quantity supplied and a change in supply?
11. What are the factors that will change supply?
12. How does price and quantity change when the equilibrium changes?
13. What are price ceilings and price floors, and what do they cause?
Unit 2: Measurement of Economic Performance
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21.
What is the business cycle? How does it relate to the macroeconomic indicators?
What is included in the GDP? Differentiate between the income and expenditure approaches.
What is the circular flow?
What is the difference between nominal and real GDP? Calculate it.
What are the limitations of GDP as a measure of economic performance?
Calculate the labor force participation rate and the unemployment rate.
Differentiate between the types of unemployment.
Discuss the relationship between the following terms: full employment, natural rate of
unemployment, actual GDP and potential GDP.
22. Define inflation. Explain different methods of calculating it.
23. Calculate real and nominal wages and real and nominal interest rates.
24. Who wins and who loses with unexpected inflation/deflation?
2nd Nine Weeks
Unit 3: AD/AS and Fiscal Policy
25. Why is the AD curve downsloping? What is the difference between a movement along the AD
curve and a change in AD?
26. What are the determinants of AD?
27. What are the determinants of AS? Difference btwn a shift and a movement along the AS curve.
28. What happens to PL and RGDP when AD shifts along different portions of the SRAS curve?
29. What is fiscal policy? What are automatic stabilizers?
30. What is the difference b/wn the deficit and the debt? How will changes in government spending
affect the deficit/debt?
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31. How do the multipliers (tax, spending, and balanced budget) affect aggregate demand? Be able
to calculate.
Unit 4: Money and Monetary Policy
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What are the functions and characteristics of money?
What are the factors influencing the demand for money?
Define the money supply and other financial assets.
Calculate the time value of money.
How is money created in a fractional banking system? Be able to calculate, given data, the size
of the money multiplier and a change in the money supply.
How does the Federal Reserve System regulate the money supply? How does open market
operations affect the price of bonds?
How do fiscal and monetary policy change aggregated demand?
How does an economy adjust to the long-run equilibrium without fiscal or monetary policy?
How do classical and Keynesian schools differ?
What are the criticisms of fiscal policy, including crowding out, and monetary policy?
How does the Phillips Curve model reflect changes in the AD/AS model?
Define economic growth and the determinants of economic growth. How do public policies
affect economic growth?
Unit 5: International Trade and Finance
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What are the effects of trade restrictions?
How are the balance of payments accounts transactions recorded?
How are the exchange rates determined? How does the exchange rate affect net exports?
How does fiscal and monetary policy affect exchange rates?
THE AP MACROECONOMICS EXAM IS MAY 14.
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