AP Macroeconomics
Mr. Jay McCormick
Email: john.mccormick@cr.k12.de.us
Phone: (302) 697-2161, ext. 4115
Website: www.mrmccormick.net
Office Hours: Monday thru Friday 6:45-8:00 AM, or by appointment
Course Syllabus
Fall 2015 Semester
Introduction and Purpose
This course is intended to serve as an introductory one semester college-level course in macroeconomics. The
overall goal of the course is twofold. First, the course is intended to provide you with a college experience while
still in the familiar surroundings of high school. Second, you will become more prepared for the Advanced
Placement examination in Macroeconomics.
The College Board’s “Course Description” for Macroeconomics explains the content purpose of the course as
follows:
“The purpose of an AP course in macroeconomics is to give
students a thorough understanding of the principles of economics
that apply to an economic system as a whole. Such a 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.”
Textbook
McConnell, Campbell R., Stanley L. Brue, and Sean M. Flynn, Economics: Principles, Problems, and Policies, AP Edition.
New York: McGraw-Hill / Irwin, 2012. Nineteenth Edition.
Supplemental Materials
Chasey, James, Multiple Choice and Free-Response Questions in Preparation for the AP Economics
Examination. Brooklyn, NY: D & S Marketing Systems, Inc., 2002. Second Edition.
Selected readings and websites
Course Outline
Unit I:
Basic Economic Concepts (2 weeks)
Chapters 1, 2, 3, and 23
Unit Exam
September 15
Topics:
Scarcity, Choice, and Opportunity Cost
Comparative and Absolute Advantage
Specialization and Trade
Business Cycle: Unemployment
Business Cycle: Inflation
Business Cycle: Economic Growth
Supply and Demand and Equilibrium
Unit II:
Measurement of Economic Performance (2 ½ weeks)
Chapters 24, 25, 27, and 28
Unit Exam
October 6
Topics:
Gross Domestic Product: Creation
Gross Domestic Product: Uses
Gross Domestic Product: Real v. Nominal
Real v. Nominal GDP
Expenditures Approach: C and Ig
Expenditures Approach: G and Xn
Income Approach
National Income to GDP
Net Domestic Product
National Income, Personal Income, and Disposable Income
Circular Flow: Market and Economy
Calculating CPI, RGDP, and GDP Deflator
Consumption and Saving
Aggregate Expenditures Graph
Marginal Propensity to Save and Marginal Propensity to Consume
The Spending-Multiplier Concept
Investment Demand and Equilibrium GDP
Equilibrium GDP: C + Ig
Unit III:
National Income and Price Determination (2 ½ weeks)
Chapters 29 and 35
Unit Exam
October 22
Topics:
Equilibrium GDP: Net Exports and Government Expenditures
Taxation and the Balanced-Budget Multiplier
Aggregate Demand: How Derived, Determinants, and Shifts
Aggregate Supply: How Derived, Determinants, and Shifts
Macroeconomic Equilibrium: Real Output and Price Level
Short-Run Aggregate Supply
Long-Run Aggregate Supply
Unit IV:
Financial Sector (3 weeks)
Chapters 31, 32, and 33
Unit Exam
November 18
Topics:
Financial Assets
Time Value of Money
Creation of Money and Measures of Money Supply
Federal Reserve System
Determinants of Money Demand
Money Market Equilibrium
Role of the Equilibrium Interest Rate
Determinants of the Equilibrium Interest Rate
Money Market v. Loanable Funds Market
Tools of the Central Bank
Quantity Theory of Money
Monetary Policy: Real Growth and Inflation
Unit V:
Inflation, Unemployment, and Stabilization Policies (4 weeks)
Chapters 26, 30, and 35
Unit Exam
December 14
Topics:
Fiscal Policy and Aggregate Demand
Monetary Policy and Aggregate Demand
Fiscal Policy and Aggregate Supply
Monetary Policy and Aggregate Supply
Fiscal and Monetary Policy: Affect on Output and Price Level
Short Run without any Fiscal or Monetary Changes
Long Run without any Fiscal or Monetary Changes
Short and Long Run Affects of Fiscal and Monetary Policies
Effect of Government Budget Deficits
Creation of the National Debt
Deficit, Interest, and Inflation
Phillips Curve and Unemployment v. Inflation
Demand-Pull Inflation
Cost-Push Inflation
Economic Expectations of Inflation
Unit VI:
Economic Growth and Productivity (1 ½ weeks)
Chapter 25
Unit Exam
No Separate Exam (Combined with Unit VII)
Topics:
Development of Long Run Economic Growth
Productivity and Real Output
Investment: Human Capital v. Physical Capital
Investment: Research and Development and Technology
Public Policy and Long Run Economic Growth
Unit VII:
Open Economy: International Trade and Finance (2 weeks)
Chapters 25, 37, and 38
Unit Exam
January 15
Topics:
Goods Market v. Financial Market
Current Account Balance v. Capital Account Balance
Trade Balance and the Foreign Exchange Market
Equilibrium Exchange Rate
Market Forces and Public Policy: Currency Demand and Supply
Currency Appreciation and Currency Depreciation
Capital Flows and Net Exports: Effect on Financial Goods and Markets
Effect of Restrictions and International Payments on Trade
Effect of Domestic Policy on Trade and Exchange Rates
Grading Procedure
In this course your assignments will be broken into 3 main categories: Tests (which includes quizzes), Projects,
and Free-Response Questions (FRQ). The weight for the various areas is as follows:
Tests:
Projects:
FRQs:
60%
15%
25%
Tests
Units I, II, III, IV, and V will culminate with a test consisting of 20 multiple choice questions and either one or
two free-response questions. Because Units VI and VII are so short, they will be combined to form one regular
length test. The questions on all tests are cumulative and may require application of knowledge gained in
previous units. Other quizzes may be added as needed.
Projects
During the course of both marking periods you will be expected to complete a major project. The purpose of
these projects is to apply the knowledge gained in class to real situations. Both projects will require extensive
research. The nature of the projects will change from year to year depending on the nature of the global
economy.
Free-Response Questions
In addition to a cumulative test, each unit will also include an FRQ-exclusive assessment. This will be given in
the middle of the unit to monitor your understanding of the material prior to the end-of-unit test. Some of the
questions will require the application of knowledge gained in previous units.
Make-Up Work
It is the responsibility of the STUDENT to arrange for a time to complete make-up work due to an absence.
YOU WILL HAVE ONE WEEK TO MAKE UP AN ASSIGNMENT. AFTER THAT TIME THE GRADE WILL
BECOME A ZERO. If you have an extended illness or permission from the instructor, this timeline may be
extended. The best time to complete make up work is from 7 AM to 8AM, but this should still be arranged with
the instructor prior to arriving to avoid conflicts. (*NOTE: This is subject to change based on application of PLC
to the Staff Workday.) After school appointments can be made as necessary.
Marking Period Grades
Although this is an Advanced Placement course, your marking period grade will be based on the Caesar Rodney
School District scale as follows:
A = 92%-100%
B = 85%-91%
C = 75%-84%
D = 70%-74%
F = Below 70%
Course Grades
This is a half year course. Therefore, you will be graded based upon the Caesar Rodney School District scale for
half year courses as follows:
First M.P.
= 40%
Second M.P.
= 40%
Final
= 20%
The AP Exam
The Advanced Placement Macroeconomics exam will be given at 12:00 PM on Wednesday, May 11, 2016. The
following description of the exam comes from the College Board’s “Course Description” for Macroeconomics:
“The … AP Macroeconomics Exam [is] a little over two hours long. [The] exam
consists of a 70 minute multiple choice section and a 60 minute free response section.
Some questions in the free response section require graphical analysis. The free
response section begins with a mandatory 10 minute reading period. During this period,
students are advised to read each of the questions, sketch graphs, make notes, and plan
their answers. Students then have 50 minutes to write their answers. The multiple choice
section accounts for two-thirds of the student’s exam grade and the free-response section
for the remaining one-third.”
Free Response: -One-third of exam score
-60 minutes for all (10 minutes for reading, 50 minutes for response)
-One long essay (50% of the free response score)
-Two short essays (together totaling 50% of the free response score)
Multiple Choice:
-Two-thirds of exam score
-70 minutes
-60 questions
-Percentage of questions asked by unit area:
-Basic Economic Concepts (8-14%)
-Supply and Demand (15-20%)
-Theory of Consumer Choice (5-10%)
-Production Costs (10-15%)
-Firm Behavior and Market Structure (25-35%)
-Factor Markets (10-18%)
-Market Failures and the Role of Government (12-18%)
The registration date for the exam will be announced at a later date, but is typically in March.