AP Macroeconomics Syllabus
Mr. Snyder
Welcome!
Seeing each of you in class today brings me great personal and professional satisfaction. By enrolling
in AP Macroeconomics you have made a wise choice for your educational future. You and your peers
will encounter an economic playing field unlike any other. This course will help you understand the
opportunities and challenges that await you.
This year the AP Macroeconomics Exam will begin at 8:00 a.m. on Thursday, May 15, 2014.
For our study of Macroeconomics we will use McConnell, Brue and Flynn’s AP 19th edition
Economics as our text. You are responsible for bringing this book to class each day and for returning it
in good condition at the end of the semester. Many students have found it cost effective and
convenient to purchase a used copy of the text online.
Topics to be covered throughout the course
Ten Principles of Economics
We will discuss how economic production is measured
The role of the financial sector in determining a nation’s fate
How to thinking like an Economist
The interdependence and the gains/loss from Trade
Impact of International Trade
The Market Forces of Supply and Demand
Measuring a Nation’s Income
The correlation of national income and price determination
How to measuring the Cost of Living
Production and Growth
Saving, Investment and the Financial System
The impact of unemployment
The Monetary System
Money Growth and Inflation and stabilization
Open Economy Macroeconomics: Basic Concepts
Theory of practice
Aggregate Demand and Aggregate Supply
The influence of Monetary and Fiscal Policy on Aggregate Demand
The Short-Run Tradeoff between Inflation and Unemployment
Debating economic policy
How the utilization of resources within and across a county impacts economic activity,
both decline and progress, and how policymakers go about making decision impacting
aggregate programs.
In addition to the McConnell text, we will undertake extensive readings from daily newspapers,
news magazines, Internet news services, and other relevant sources of macroeconomics
information such as scholarly journals and publications of the regional United States Federal
Reserve banks. We will also engage in writing and various in-class activities.
Class Policies and Procedures:
First off, regular timely attendance is essential to the smooth functioning of this class. Your teacher
understands that some excused absences are unavoidable and asks that you schedule time away from
class so as to cause the fewest possible interruptions to your learning. Also, let your teacher know of
upcoming absences and take responsibility for making up any assignments resulting from excused
absences.
It is recommended that you develop good relationships with fellow students in class so that you can
consult others’ class notes when necessary. As upperclassmen you alone are responsible for catching
up any absences.
An Important Note about Unexcused Absences and Late Work
My general policy is not to accept late work in this AP class. Even the most diligent student
experiences scheduling difficulties from time to time that interfere with timely completion of
homework, however. As part of our study of economics, a mechanism will be created that will permit
a limited number of opportunities to submit late assignments for credit. Details will be provided in
class.
By definition, there is no justification for an unexcused absence at EHS. Under no circumstances will
students be permitted to submit late work that was due on the day of an unexcused absence. Your
mature understanding of this policy will be greatly appreciated. I understand that you all have choices
to make. Please recognize that some choices result in negative consequences.
No Excuses Make Ups Policy
Students with excused absences are expected to make up missed tests and quizzes promptly.
Make up tests and quizzes must be scheduled in writing on a day approved by Mr. Snyder within three
days of the missed test/quiz. Students who miss a scheduled make up will receive a grade of 0 for that
assignment. If you cannot attend a scheduled make up notify me as soon as possible.
No Excuses!
You will need a 3-ring binder
You can expect to receive a number of handouts during the semester and it will be helpful to be able to
retrieve them quickly and reliably. You will also be expected to use the binder for storing any ongoing
writing assignments, including weekly readings.
Grading
Grades will be based not only on test and quiz scores, but also on homework, readings, in-class
contributions, and indicators of overall preparedness and enthusiasm for the course material. The
success of this class depends on each student’s willingness to prepare and contribute, and to display an
attitude consistent with doing one’s best on the AP Exam. We can only take from the class what each
of you puts into it. Please do your best, always. Your best efforts will help everyone in your class.
In addition to 5 course long projects, you will be quizzed weekly on assigned readings and tested on
each chapter. We will review the released AP Macroeconomic tests and you will be expected to take a
released AP exam in January and a second one shortly before the actual exam. All students will be
required to take the exam and it will be a major grade in the marking period in which the actual exam
occurs. The course is divided into 7 Units, I will provide you with details in class. You will be tested
and quizzed in each unit on: Content – Vocab, Graphs and Charts, FRQs, LRQs and MC.
Common Traits of Successful AP Economics Students
Students who have been successful in AP Macroeconomics have a set of characteristics in common.
These include:
1. The student assumes personal responsibility for learning economics.
The instructor, the text, and the study guides cannot teach you economics. They are merely resources
to help you learn the subject. The successful student uses each to good.
2. The student brings and uses appropriate prerequisite skills in English, math, and
critical thinking to the learning of economics. The ability to read the English language carefully and
precisely is obviously needed. The ability to deal with algebraic concepts and simple geometry is also
required for success. Finally, the successful student must be able to think critically on issues.
3. The student devotes appropriate time and energy to learning the subject. Reading the
text in a skimming fashion saves time in the short run but those savings are costly over time.
Successful students read the text very carefully and take notes on the concepts presented.
4. The student masters basic concepts and vocabulary before moving on to more difficult
material. Economics concepts tend to build on each other, and the failure to comprehend the initial
concepts guarantees problems in the future.
5. The student reinforces new knowledge. Rather than moving on to the next chapter, the
successful student reads the chapter summary and discussion questions even though they may
not be assigned.
6. The student prepares properly for economics examinations. The foundation of good test
results is the vocabulary of the subject. Next come the basic concepts, followed by the more four
complex relationships. Finally come the practice test questions and the sample essays. Only after all
these are understood can the student feel prepared.
7. The student does not rely on mere memorization. While there is rote memory work in
learning any subject, economics is not a set of answers to be memorized. Economics is a way
of analyzing problems and predicting results.
8. The student is willing to ask for help and utilize the available resources. The student
who succeeds in economics class is willing to ask questions in and out of class. That student
recognizes the value of time and, rather than struggle for hours with a concept, is willing to ask
questions in class or to phone the instructor (not after 9:30 p.m.) to clarify concepts.
9. The student attends class. Life is far too short not to learn all you possibly can the first
time around. See also, An Important Note About Unexcused Absences and Late Work, above.
10. The student sees economics in everyday life and applies class concepts to the national
news and to personal decisions. In order to understand the subject thoroughly, you must use it daily.
Practice makes perfect but only if you practice perfectly!
COURSE OUTLINE: Essential Questions
Basic Economic Concepts
CONTENT/ESSENTIAL QUESTIONS
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How does scarcity affect decision making?
How does comparative advantage impact international trade?
What is the difference between change in supply/demand and change in quantities
supplied/demanded?
What relationship does the circular flow of money model illustrate?
Skills/Graphs/Formulas
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Interpret Production Possibility Curve
Create and Analyze Supply and Demand Graphs
Create and Interpret comparative advantage Charts
Analyze the Circular Flow of Money Model
Change in Demand/Supply v Change in quantity demanded/supplied
Factors of Supply and Demand
Price Floors and Ceilings
Elastic and Inelastic Supply and Demand
Measuring Economic Well Being
CONTENT/ESSENTIAL QUESTIONS
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Are the components of the GDP more important than the actual GDP? Explain.
How does inflation impact GDP?
How effectively does the unemployment rate measure the economic well-being of a nation?
Skills/Graphs
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Compute GDP using various means (C+I+G+(X-M)) and (W+I+R+P)
Breakdown the components of GDP (Income and Expenditure Approaches)
Interpret statistics with regard to the business cycle
Real GDP= Nominal GDP/ Price Index
Analyze the Phillips Curve
Distinguish between different types of unemployment (including what constitutes the
natural rate of unemployment
Price index= market basket for current year/ market basket for base year
Developing Fiscal Policy
CONTENT/ESSENTIAL QUESTIONS
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How does a shift in aggregate demand impact the price level and real GDP? (Classical and
Keynesian perspectives)
How does the Keynesian cross illustrate the multiplier effect?
What is the impact of taxation and spending on fiscal policy?
How has fiscal policy impacted past and current economic well-being?
Skills/Graphs/Formulas
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Analyze the Keynesian cross
Compare and contrast economic models
 Apply models to current and past fiscal policies
 Expansionary and Recessionary Gaps
 Credit Market Graph
 Demand Pull Inflation
 Cost Push Inflation
 Spending Multiplier
 MPC +MPS = 1
 Phillips Curve (Long and Short Run)
 MPC = change in consumption /change in income
 MPS= change in savings/ change in income
Money, Banking, and Fiscal Policy
CONTENT/ESSENTIAL QUESTIONS
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What is the purpose of money?
What are the types of money?
What is the role of the Federal Reserve System?
How does the Fed use monetary tools to manipulate the economy?
What monetary policies are used during a recession? An expansion?
Skills/Graphs/Formulas
 Money Multiplier= 1/required reserve ratio
 Analyze the difference between M1, M2, and M3
International Economics
CONTENT/ESSENTIAL QUESTIONS
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Why is international trade important? (Open and Closed Economy)
What is the impact of a strong/weak dollar on the US trade balance?
How does the foreign exchange rate impact fiscal and monetary policy?
How does a weak/strong dollar impact foreign and domestic spending and investment?
Skills/Graphs/Formulas
 Foreign Exchange Rate Graph
 Comparative Advantage Chart
Applications of Macroeconomics
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Federal Budget Activity
The Fed Challenge
Stock Market Portfolio Project
Business Project
Economic Theory Paper & Presentations
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Helpful Websites
www.reffonomics.com
http://apcentral.collegeboard.com/apc/public/courses/teachers_corner/2120.html
www.reffonomics.com
All the graphs you will need to know on youtube:
http://www.youtube.com/watch?v=YOMbRCywqCs&safety_mode=true&persist_safety_mode=1&saf
e=active
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Youtube Professor
Breaking down concepts in 60 seconds.
http://www.youtube.com/user/ACDCLeadership#g/p
According to the College Board, the objective portion of the AP Macro exam will break down as
follows:
Content Area Percentage Goals of Exam (multiple-choice section)
I. Basic Economic Concepts (8–12%)
A. Scarcity, choice, and opportunity costs
B. Production possibilities curve
C. Comparative advantage, specialization, and exchange
D. Demand, supply, and market equilibrium
E. Macroeconomic issues: business cycle, unemployment, inflation, growth
Course introduction: discussion of course goals, requirements, and approach via
the syllabus. How will you use the book and its ancillaries? Write out three or
more things you intend to do in pursuit of economic knowledge. We will then
finish the course introduction and begin our discussion of the course
requirements; graphs, their meaning, and economic data.
II. Measurement of Economic Performance (12–16%)
A. National income accounts
1. Circular flow
2. Gross domestic product
3. Components of gross domestic product
4. Real versus nominal gross domestic product
B. Inflation measurement and adjustment
1. Price indices
2. Nominal and real values
3. Costs of inflation
C. Unemployment
1. Definition and measurement
2. Types of unemployment
3. Natural rate of unemployment
In this unit we will measure national output/income
III. National Income and Price Determination (10–15%)
A. Aggregate demand
1. Determinants of aggregate demand
2. Multiplier and crowding-out effects
B. Aggregate supply
1. Short-run and long-run analyses
2. Sticky versus flexible wages and prices
3. Determinants of aggregate supply
C. Macroeconomic equilibrium
1. Real output and price level
2. Short and long run
3. Actual versus full-employment output
4. Business cycle and economic fluctuations
IV. Financial Sector (15–20%)
A. Money, banking, and financial markets
1. Definition of financial assets: money, stocks, bonds
2. Time value of money (present and future value)
3. Measures of money supply
4. Banks and creation of money
5. Money demand
6. Money market and the equilibrium nominal interest rate
B. Loanable funds market
1. Supply of and demand for loanable funds
2. Equilibrium real interest rate
3. Crowding out
C. Central bank and control of the money supply
1. Tools of central bank policy
2. Quantity theory of money
3. Real versus nominal interest rates
V. Stabilization Policies (20–30%)
A. Fiscal and monetary policies
1. Demand-side effects
2. Supply-side effects
3. Policy mix
4. Government deficits and debt
B. The Phillips curve
1. Short-run and long-run Phillips curves
2. Demand-pull versus cost-push inflation
3. Role of expectations
VI. Economic Growth (5–10%)
A. Definition of economic growth
B. Determinants of economic growth
1. Investment in human capital
2. Investment in physical capital
3. Research and development, and technological progress
C. Growth policy
VII. Open Economy: International Trade and Finance (10–15%)
A. Balance of payments accounts
1. Balance of trade
2. Current account
3. Financial account (formerly known as capital account)
B. Foreign exchange market
1. Demand for and supply of foreign exchange
2. Exchange rate determination
3. Currency appreciation and depreciation
C. Imports, exports, and financial capital flows
D. Relationships between international and domestic financial and goods markets
About the AP Macroeconomics Exam
The exam is 2 hours and 10 minutes long, and includes a multiple-choice section and a free response
section. You'll have 70 minutes to complete the multiple-choice section. You'll have 60 minutes for the
free-response section Fifty percent of the section score is based on the long essay while each short
essay contributes one-quarter to the free-response score. The multiple choice section accounts for twothirds of the grade and the free-response section is the final one-third.
Lesson Plans
Week 1
Monday-Tuesday
Students will analyze Production Possibility Curve graphs.
Syllabus
Define economics, scarcity and shortage principles of economics
PPC curves
Wednesday
Students will analyze PPC graphs.
PPC curves
Thursday-Friday
Students will explain absolute and comparative advantage.
PPC quiz (Friday)
Absolute and comparative advantage problems
Week 2
Monday-Tuesday
Explain absolute and comparative advantage.
Video clip
work problems on board
Comparative Advantage FRQ
Wednesday
Identify determinants of Supply and Demand; analyze Supply and Demand graphs
COWS-Google Apps
Explain projects (current events)
Supply and Demand
Lecture
Problems
Thursday-Friday
Identify determinants of Supply and Demand; analyze Supply and Demand graphs
Absolute and Comparative Advantage quiz (Friday)
Supply and Demand lecture and problems
FORTHCOMING EVENTS
- Unit 1 multiple choice
- PPC quiz
- Unit 1 vocabulary test
- Absolute and comparative advantage quiz
- Supply and Demand determinants quiz
- Project check (1st part)
Week 3
Monday
Review first two weeks
Tuesday
Analyze supply and demand graphs.
Unit 1 multiple choice
Price floors and ceilings problems
Wednesday
Analyze GDP(Gross Domestic Product); assess understanding of fundamental economic terms
Unit 1 vocabulary test
Complex circular flow model (GDP) lecture
Thursday
Analyze GDP
S & D graph quiz
Complex circular flow model (GDP) lecture
Friday
Analyze GDP
1st part of project DUE (GRADED)
Is this included in GDP?
Does this count in GDP?
FORTHCOMING EVENTS
Unit 1 vocabulary test
Unit 1 Multiple choice
S & D graph quiz
S & D determinants quiz
Unit 1 test 1/28
Week 4
Monday
Analyze GDP.
Unit 1 test
Is this included in GDP?
Calculating GDP
Tuesday
Analyze GDP
Real or nominal GDP
Calculate GDP (expenditures, value added, income)
Wednesday
Analyze GDP
GDP quiz
Business cycle
Who is helped and who is hurt by inflation?
Types of unemployment
Thursday
Analyze GDP
GDP--FRQ as class
Friday
Analyze GDP
Begin preparing for Unit 2
FORTHCOMING EVENTS
Unit 1 test
GDP quiz
2nd part of project
Unit 2 multiple choice
Unit 2 vocabulary test
Review for GDP test and FRQ
1. Determine if good will or will not be counted in GDP and explain.
2. Two methods of calculating GDP; shortcoming of GDP;
in addition to nominal GDP what do
you need to know to determine standard of living
3. Calculate GDP for a country; calculate inflation rate; impact of inflation on real and nominal
wages; impact of inflation on fixed interest rate loan
Week 5
Monday
Analyze the Keynesian/Aggregate Expenditures (AE) model.
AE model
Multiplier lecture
Practice with APS, APC, MPS, MPC
http://www.theatlantic.com/business/archive/2009/10/the-magic-of-multipliers/27600/
Tuesday
Discuss how a tendency to consume or save impacts AE.
Practice with APS, APC, MPS, MPC
Unit 2 Multiple Choice due
Magic of the multiplier
Wednesday
Explain GDP terms.
Unit 2 vocabulary test
Work on Magic of multiplier
Thursday-Friday
Assess understanding of GDP
Last part of Project 1 due
Unit 2 test
Multiple choice-Thursday
FRQs-Friday
FORTHCOMING EVENTS
Magic of multiplier
Unit 2 multiple choice
Unit 2 vocabulary test
Unit 2 exam
Week 6
Monday
Students will analyze how AD and AS determinants shfit AD and AS curves.
AD and AS lecture
Everbank
http://www.dailypfennig.com/
Practice sheet: AD and AS
Tuesday
Students will analyze how AD and AS determinants shift AD and AS curves.
AD/AS practice sheet
Wednesday
Students will analyze how AD and AS determinants shift AD and AS curves.
Practice sheet AD/AS
Macro model: Short run to long run AS
Thursday
Students will analyze impact of fiscal policy.
Fiscal policy lecture
Discretionary/automatic fiscal policy
Smart activity
Friday
Assess understanding of AE, AD, and AS terms.
Unit 3 vocabulary test
Unit 3 multiple choice
Forthcoming events
Unit 3 multiple choice
AD/AS quiz
Unit 3 vocabulary test
Unit 3 review (FRQs)
1. Labor productivity; sources; AD/AS; PPC
2. AD/AS/LRAS; G increases; decrease corporate profit taxes; PPC
3. National sales tax impact on C and S; loanable funds market graph; long-run economic growth
AMAZON.COM and Florida
Week 7
Monday
Students will work on projects
Tuesday
Students will analyze impact of AD, AS, and fiscal policy.
Unit 3 vocabulary test
AD/AS quiz
Wednesday
Students will analyze impact of AD, AS, and fiscal policy.
FRQs (as class)
Unit 3 MC due
Short run to long run model
Thursday
Students will analyze impact of AD, AS, and fiscal policy.
FRQs--as class
Review game
Friday
Students will analyze impact of AD, AS, and fiscal policy.
Individual FRQ
FORTHCOMING EVENTS
AD/AS
Unit 3 Multiple Choice
LFR (long free response) - Introduction
Unit 3 vocabulary test
Unit 3 test
FRQ
MC
Week 8
Monday-Tuesday
Students will analyze AD and AS shifts and analyze impact of fiscal policy.
Unit 3 exam
FRQs-Monday
Multiple choice-Tuesday
Wednesday
Students will analyze basic tools used to implement monetary policy.
Money and Banking lecture
Creating money
Multiple expansion of checkable deposits
Thursday
Students will analyze basic tools used to implement monetary policy.
Monetary equation of exchange
Multiple expansion of checkable deposits
Friday
Students will analyze basic tools used to implement monetary policy.
Monetary policy lecture
Monetary policy graphs
Money Market graphs
FORTHCOMING EVENTS
Unit 3 test
FRQs-Monday
Multiple choice-Tuesday
Allegory (project)
Week 9
Monday
Students work on projects
Tuesday
Students will analyze basic tools used to implement monetary policy.
Money Market graphs
Work on allegory
Wednesday
Students will analyze basic tools used to implement monetary policy.
Unit 4 vocabulary test
Thursday
Students will analyze basic tools used to implement monetary policy.
Graphing monetary and fiscal policy interactions
Monetary expansion problems
Friday
Students will analyze basic tools used to implement monetary policy.
Allegory DUE (project)
FRQs as class
FORTHCOMING EVENTS
Unit 4 vocabulary test
Project (allegory)
Week 10
Monday
Students will analyze fiscal and monetary policy.
Money expansion problems
Graphing Fiscal and Monetary policy interactions
Tuesday
Students will analyze fiscal and monetary policy.
FOMC-policy impact (SMART)
SMART response multiple choice
Unit 4 multiple choice
Wednesday
Students will analyze fiscal and monetary policy.
Work on Unit 4 FRQs
Unit 4 extra credit due
Thursday
Students will analyze fiscal and monetary policy.
Unit 4 FRQs
FRQ-individual-grade
Friday
Students will analyze trade-off between inflation and unemployment.
Short run and long run Phillips Curve
FORTHCOMING EVENTS
Unit 4 test
FRQ
MC
Extra credit
Free response review Unit 4
1. Fiscal policy decrease unemployment; AD/AS graph; interest rates; open market operations
2. Money expansion problem; bonds
3. Loanable funds market; PPC
Week 11
Monday
Students will discuss the trade-offs between inflation and unemployment.
Phillips Curve
Economic theory lecture
Tuesday
Students will discuss various economic theories.
Classical vs. Keynesian economic theories
Tree of economic theory
Wednesday-Thursday
Assess students' understanding of fiscal and monetary policies.
Unit 4 exam
FRQs-Wednesday
MC-Thursday
Friday
Bad Weather – Makeup – HELP ME Day
FORTHCOMING EVENTS
Unit 4 test
FRQs Wednesday
MC Thursday
Unit 5 vocabulary test
Week 12
Monday
Students will discuss various economic theories and apply them to FRQs.
Classical vs. Keynesian quiz
FRQs---as class
Tuesday
Students will analyze the trade off between unemployment and inflation.
Unit 5 multiple choice due
Unit 5 vocabulary test
FRQs as class
Wednesday-Thursday
English “DAY OF RECONING”
Friday
Students will apply economic concepts to FRQs.
Unit 5 FRQ
Smart response system---Unit 5 multiple choice
FORTHCOMING EVENTS
Unit 5 multiple choice
Unit 5 FRQs
Unit 5 vocabulary test
FRQ topics for exam
1. Actual unemployment rate vs. NRU; if government lowers unemployment compensation what
impact will this have on NRU and long run Phillips curve
2. Short run and long run Phillips curve; how does government spending and a drop in
inflationary expectations impact SRPC; increased unemployment benefits impact on LRPC
3. AD/AS graph; impact of decrease in personal income taxes on SRPC; impact on SPRC if
government does not take any action
4. Functional finance views public budget primarily as way to stabilize economy.
Week 13
Monday-Tuesday
Assess understanding of Phillips curve and economic theories.
Multiple choice--Monday
FRQs--Tuesday
Wednesday-Thursday
Assess students' understanding of macroeconomic concepts.
"Lines in Motion"
http://www.theepochtimes.com/n3/67133-can-global-supply-chains-be-accountable/
Friday
Students will analyze the impact of imports and exports as well as analyze changes in exchange rates
and effects in balance of trade.
Barriers to trade
Exchange rate
Imbalance of payments
FORTHCOMING EVENTS
Unit 5
Multiple choice
FRQs
Week 14
Monday
Students will analyze changes in the exchange rate and the impact on balance of payments.
Foreign exchange problems & imbalance of payments
Connections: Balance of Payments
Tuesday
Students will analyze changes in the exchange rate and the impact on balance of payments.
Connections: Balance of Payments
Foreign currency problems
Wednesday
Students will analyze changes in the exchange rate and the impact on balance of payments.
How monetary and fiscal policy impacts exchange rates
Thursday
Students will analyze changes in the exchange rate and the impact on balance of payments.
Exchange rate lecture
Graphs
Friday
Students will analyze changes in the exchange rate and the impact on balance of payments.
Unit 6 & 7 multiple choice
FRQs
Week 15
Monday
Students will analyze changes in the exchange rates and graphs.
FRQs/MC
SMART activity (Jeopardy)
Tuesday
Review
Wednesday
Assess students' understanding of exchange rates and balance of payments.
Unit 6 & 7 vocabulary test
FRQs
Thursday
Review
Friday
Assess students' understanding of macroeconomic concepts.
Jeopardy
Week 16
Monday-Tuesday
Assess students understanding of economics.
Unit 6 & 7 exam
Wednesday-Friday
Review for AP exams
Week 17
Assess students' understanding of government and macroeconomic concepts.
Review for and take AP test
Work on end of year projects
Week 18
Monday-Friday
Assess students' understanding of government and macroeconomic concepts.
Work on end of year projects
Week 19
Monday-Friday
Assess students' understanding of macroeconomic concepts.
"A Bug's Life"
Week 20
Presentations of student projects
Week 21: June 3rd-6th
Final Exams and see ya’, it’s been, uh, FUN!