TAG MAGNET HIGH SCHOOL
AP Macroeconomics Syllabus
Description of Course Activities:
Advanced Placement Macroeconomics is designed to engage students in intellectual,
critical, and creative process of thinking skills from in class discussion, individual
projects, and hands on problem solving. Advanced Placement Macroeconomics requires
extensive reading, research, and problem solving responsibility from the student. The
course will give students a thorough understanding of the principles of macroeconomics
such as fiscal and monetary policy, aggregate demand and supply, output, price
determination, national income, performance measures, and the global economy. The
goal is for students to be prepared to take the college level examination and to make the
student interested and excited about learning the field of Macroeconomics.
Advanced Placement Macroeconomics follows the curriculum of the Advanced
Placement Board and the Texas Education Agency. AP Macroeconomics taught at the
TAG Magnet will include Gifted and Talented Strategies using real world applications
and problem solving skills, and involve learning seminars with other disciplines.
Course Objectives and Student Outcomes
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Students will be prepared to do acceptable work on the AP Macroeconomics Exam.
Explain various economic models including Keynesian and Classical
Explain government economic indicators and their application to the national
economy
Understand the various aggregate supply/demand to the national economy
Cause and effect of how one countries economic polices has an impact on our country
Understand the impact of the Federal Reserve Bank on economic policy
Enrichment activities include:

Group Research Project: Perform an analytical and critical analysis of released
information data by the United States Government. Students will collect data, make
hypotheses, identify patterns, and synthesize their released economic data. Examples
of project analysis include current information on the United States gross domestic
product, consumer price index, producer price index, business inventories,
unemployment, trade deficits, and currency exchange. An oral presentation of the
product will be presented to the class.

Field Trip: Visit the Federal Reserve Bank in Dallas where students will be presented
an overview of Government budget policies, interaction of fiscal and monetary
policies, tools of central bank policy, and the definition of money and its creation.

Stock Market Game: Students will have an allowance to buy and sell stocks and
bonds of their choosing to make profit during the course. Main focus will be on the
law of Supply and Demand and the ability to create and equilibrium price of their
goods and services.

Non Curricular Seminar: In class presentation of current tax laws including various
retirement vehicles such as 401K, 403B, Traditional IRA, Roth IRA, and the use of
Insurance Annuities. Presentation will also include the use of mutual funds:
including the difference between no load and loaded funds, types of stock funds,
types of bond funds, types of money market funds, and tax advantages of each type.
Items of discussion will also include various types of life insurance including term,
whole, universal and variable universal products.
Text Book(s):
McConnell, Campbell, Stanley Brue, Sean M. Flynn. Economics: Principles, Problems,
and Policies, 19th ed. McGraw-Hill/Irwin, 2012.
N. Gregory Mankiw, Principles of Economics, 2nd ed. South-Western Thompson
Learning, 2001
Additional Student Reading Requirement
Todd Buchholz, From Here to Economy, New York: Plume, 1995
Grading Policy - based on Dallas ISD school policy
Grading Scale for Six Weeks Average
Class work/Homework
40%
* Major Tests
25%
Projects/Products
20%
* Six Weeks Test Grade
15%
*Multiple choice exam questions and essays will be taken from released AP United
States Government and Politics exams from the Advanced Placement College Board.
If a Major Test is failed the student may retake and the higher score earned will be
recorded as the grade.
Late Homework assignments will receive a grade of 50 if turned in by the next two
school days after due date. After that date a grade of 0 will be recorded. Homework
assignment policy is determined by the TAG Social Studies Department.
Course Outline
Practice Diagnostic - 2000 releases Advanced Placement Macroeconomics Exam
I.
Basic Economic Concepts
a.
Define and Identify – scarcity and unlimited wants and limited recourses
(land, labor, capital, entrepreneurships)
b.
Identify – tradeoffs and opportunity cost
Mankiw short film – People face tradeoffs. What you give up to get it.
c.
Production Possibilities Curve – Identify concave or bowed out curve,
identify points inside, along, and outside the PPC and their significance.
d.
Students will draw, graph, and interpret the PPC as it relates to tradeoffs,
choices, historical conditions, and reaching points outside.
e. Comparative and Absolute Advantage, Specialization, and Exchange:
Distinguish and Illustrate between absolute and comparative advantage
and calculate product exchange.
f. Introduction to Demand, Supply, and Market Equilibrium: students will
construct graphs illustrating demand, supply, and equilibrium price.
1.
2.
3.
4.
5.
Distinguish between a change in demand and quantity
demanded.
Distinguish between a change in supply and quantity supplied.
Graph a demand and supply curve showing price, quantity,
equilibrium.
Explain determinates of demand and supply, explain and show
direction of curve shift of demand and supply and its
importance.
Students will draw, graph, and illustrate a correctly labeled
demand and supply graph, showing changes in different
economic conditions.
g. Introduction to Macroeconomic Issues: business cycle, unemployment,
inflation: Throughout course students will be responsible in gathering
United States Government release of current event information showing
course related economic data. Required Data and date of release will be
posted on web site one week in advance.
II.
Measurement of Economic Performance
a.
b.
National Income Concepts: Circular Flow Model, Measuring the GDP,
and Components of the GDP, Business Cycles.
1.
Students will identify, illustrate, and explain the Circular Flow
Model showing the resource market, product market, business,
households, and government
2.
Students will identify and explain, graph, and calculate the
Expenditure Approach of GDP: C + Ig + G + Xn.
3.
Students will identify and explain the Income Approach of
GDP: W + I + R + P
4.
Students will identify and calculate the Nominal GDP and the
Real GDP using a base year, students will also identify the GDP
Deflator. Students will also be introduced to the Consumer Price
Index as a comparison to the GDP.
5.
Identify and calculate the net domestic product (NDP), national
income (NI), personal income (PI), and disposable income (DI)
6.
Students will graph and identify the four phases of the business
cycle: Trough, Expansion, Peak, and Contraction.
7.
Identify the Underground Economy
8.
Introduction to Consumption Function Graph and Marginal
Propensities of consumption and savings, Students will use
MPC & MPS formulas to calculate equations.
Inflation Measurement and Adjustment
1.
2.
3.
Identify the Consumer Price Index and when released and by
what government agency, and how it is calculated.
Identify problems with the Consumer Price Index and compare
with the GDP.
Identify the Producer Price Index.
4.
5.
c.
Identify Demand-Pull and Cost Push Inflation, Hyperinflation,
Deflation, Stagflation, and historical and current event
examples.
Identify: Who is Hurt by Inflation? Who is Helped by
Inflation? Identify COLA.
Unemployment
1.
2.
3.
4.
5.
Identify and Define types of Unemployment: frictional,
structural, cyclical and seasonal.
Identify measurement of unemployment: Who is counted and
who is not?
Identify full employment: Introduction to full employment and
LRAS on AD/AS graph.
Identify and define underemployment, discouraged job seekers,
Identify the Natural Rate of Unemployment.
REVIEW FOR SIX WEEKS FINAL
1st Six Weeks Final
III.
National Income and Price Determination
Aggregate Demand, Aggregate Supply, Macroeconomic Equilibrium
a.
Aggregate Demand and Aggregate Supply – Students will graph,
illustrate, and correctly label an Aggregate Demand and Aggregate
Supply graph showing full employment, price level and output.
b.
Students will identify and graph Recession and Inflation on an AD/AS
graph.
c.
Students will identify determinates of Aggregate Demand.
d.
Students will identify determinates of Aggregate Supply.
e.
Students will graph and identify short run and long run Aggregate
Supply.
f.
Students will identify Crowding out effects on AD/AS and multipliers of:
Introduction to Fiscal Policy and government spending.
g.
Students will identify the impact of Technological change and
introduction of Supply Shocks.
h.
Introduction to Classical Theory and Keynesian Theory
i.
Students will graph AD/AS using three range Aggregate Supply Curve
Start of Stock Market Game – Trading must include a No Load Mutual Bond Fund and a
Stock Fund, Individual Stock, and Money Market Account – Stocks must be a minimum
of $5. Unlimited trading but not allowed during class.
IV.
Financial Sector
Money, Banking, and Financial Markets
d.
e.
f.
g.
h.
i.
Students will identify functions of money: medium of exchange, standard
of value, store of value.
Identify Money Supply Definitions: M1, M2, and M3.
Identify a Money Market, Stocks and ownership, Bonds and debts.
Identify Banks and the creation of money.
Discuss the present and future value of money.
Introduction to the Loanable Funds Market.
Central Bank and Control of the Money Supply
a.
b.
c.
d.
Students will identify the Federal Reserve System (FED) and its current
chairman. Students will research different branches and structures of
system.
Identify the importance of the FED: U. S. bank, local banks borrow from,
regulation of banks, increasing and decreasing the money supply,
clearing checks.
How Does the FED control the Money Supply? Reserve Requirement,
Discount Rate, Open Market Operations.
Identify Real Interest Rate and Nominal Interest Rate – individual
importance of staying ahead of inflation in savings.
*** Time permitting: Tour of the Federal Reserve Bank with a speaker
discussion the FED and Monetary Policy.
V.
Inflation, Unemployment, Stabilization Policies
Fiscal Policy and Monetary Polices
a. Students will identify Discretionary Fiscal Policy.
1.
Changes in government spending in recession and high
inflationary periods.
2.
Changes in government tax rates in recession and high
inflationary periods.
3.
Identify the Laffer Curve.
4.
Identify government deficits and debt.
5.
Supply Side effects and Environmental Regulations.
Review Classical and Keynesian Theory with historical significance.
Review Crowding Out.
Students will identify Monetary Policy.
1. Students will analyze Short Run and Long- Run effects of
Monetary policy.
2. Review the three tools of the FED.
3. Identify Monetarist theory and MV=PQ.
Students will graph crowing out effect and Laffer Curve.
b.
c.
d.
e.
Inflation and Unemployment
a.
b.
c.
Review of types of inflation: Cost-Push and Demand Pull.
Students will graph and interpret the short run and long run Phillips.
Curve and identify its historical importance.
Discuss Rational Expectations Theory.
REVIEW FOR 2ND SIX WEEKS FINAL
2nd Six Weeks Final
VI.
Economic Growth and Productivity
a.
b.
c.
d.
Investment of Human Capital – Knowledge and Skills to make a
productive worker.
Investment in Physical Capital – Machinery and Buildings.
Research and Development, and Technological progress – Inventions and
Products.
Growth Policy – Importance of healthy Long-Run Growth.
VII. Open Economy: International Trade and Finance
Balance of Payments Accounts
a.
b.
c.
d.
Review of Comparative and Absolute Advantage.
Identify Balance of Trade in international trade and financial
transactions.
Identify Current Account.
Identify Capital Account.
Foreign Exchange Market, Net Exports and Capital Flows,
Financial and Goods Market
a.
b.
Students will graph currency changes and research current currency
exchange rates.
Identify the Demand for and Supply of Foreign Exchange.
c.
d.
e.
f.
g.
Identify current Currency appreciation and depreciation in the Foreign
Exchange Market.
Identify trade barriers, free trade and protectionism.
Identify international trade agreements: NAFTA, EU, and WTO.
Compare difference in international trading partners – Capitalist,
Socialist, developed and developing countries.
Discuss and identify outsourcing and the changing world economy.
REVIEW FOR THE AP MACORECONOMICS EXAM