ADVANCED PLACEMENT MACROECONOMICS



ADVANCED PLACEMENT MACROECONOMICS

Mrs. Chacon- De Armas

Course Overview

AP Macroeconomic is a college level semester course in which student will encompass both the general and specific concepts of the principles of economics that apply to an economic system as a whole. This course will emphasizes economic growth, financial market, stabilizing policies , economic performance measures, national income, and international economics. Though out this course there will be extensive use of charts, graphs, and statistics for you to interpret and analyze the impact of policies in economics.

TEXTBOOK

McConnell, Campbell and Stanley Brue. Macroeconomic 16th eds. New York : McGraw Hill .

c2003 (provided)

SUPPLMENTAL RESOURCES

TEXTBOOK

Krugman, Paul and Robin Wells. Macroeconomics. New York: Worth Publishing.c2005

Taylor, John . Principles of Macroeconomic 5th eds. Boston : Houghton Mifflin c2005

WORKBOOK

Morton, John. Advancement Placement Economic Macroeconomics student Activities,

3rd ed. New York: National Council on Economic education, 2003 ( provided)

How to Prepare for the AP Microeconomic/Macroeconomics Advanced Placement

Examination. Frank Musgrave and Elia Kacapyr, authors. Barron’s Educational Series

(provided)

Additional readings

Wall Street Journal

The Economist

Other Magazine and newspaper articles

Course Objectives

1. Explain the fundamental economic concepts such as scarcity, opportunity cost and supply and demand.

2. Demonstrate an understanding of the measurements of such as GDP, unemployment and inflation.

3. Analyze the impact of economic fluctuation on the economy’s output and price level.

4. To understand Monetary policy how the Fed performs and implement policy and its effects on real output growth.

5. to understand the public policy affects on economy outputs, price levels and level of employments both short-run and long-run.

6. Explain the role of productivity in raising real output and standard of living and its impact on long-run economic growth on the economy.

7. Examine the effects of trade restrictions, international payment system impact on trade and how domestic policy action affect international finances

Expectation

Students participating in this program will be expected to take the College board test for AP Macroeconomics in May, 2010

Students must also understand that there will extensive supplemental readings. Therefore, time management, organization and attendance will play a key factor in the success of this program.

Computer knowledge and access to the internet will be needed during this course. Student may used the school library which is available during evening hours, public libraries and e- Library in the local area.

Students will have an understanding of macroeconomics and will discover an understanding of domestic and global economy especially with policy making

Suggestions for Success

• Read the textbook including chart , graphs or other visuals activities

• Keep up with current economic scenarios and policies both domestic and global

• Don’t forget the basics: vocabulary, focus questions, writing skills

• Form a study group

• Good attendance

• Time management

Suggested Website









* other topic related websites will be suggested during the course.

CONTACT: chacond@ or 305-822-1500 ext. 2493

Attendance

1. Student with more than 5 unexcused absences will receive a NO CREDIT for a semester course.

2. Continuous tardy will result in detentions

3. Make-Up: If you are absent for 1 class you are expected to turn in make-up assignment

next class with an excused absence note.

4. When you return from an absence expected to immediately turn in any assignments due from the absent date.

Supplies

You will need to have at least 2 “ binder, a three-hole puncher, loose leaf paper, 10 dividers, Notebook with one subject area. All assignment will be written in blue or black pen. Highlighters will be helpful.

Divider 1 Course information

Divider 2-8 the titles of the 7 Units in Macroeconomics

Divider 9 Collection of Graphs

Divider 10- AP review

Assignments

Journal

The journal will consist of three parts.

• The first part will be classroom journal entries will reflect the topic of the day, relate to readings or review material.

• The second portion will consist of weekly current event using a national newspaper, journal or economic magazine. You will write a summary of the article identifying the relationship to the economy. The following are suggestion.

• The third portion will consist of a collection of graphs, tables, charts or political cartoons referring to 7 units in Macroeconomics

Newspapers Wall Street Journal ,New York Times, USA Today

Magazine: The Economist, Business Week , etc….

Summer reading

Each summer student will receive a summer reading project. They will research various economic topics using many primary resources presented thought government agency chart and data such as the BLS, The Federal reserve system GOFRED. This assignment will always be due the first day of the new school year

Home Work Assignment

Student will be responsible for reading the chapter prior to arriving in class. Students will also receive a chapter review sheet including the following : vocabulary , reading focus questions, discussion questions , data and chart interpretation , critical writing activities and weekly research topic.

Research Papers

A variety of writing assignments will be given to assess student understanding of material and as practice for the writing requirement for the AP exam, such as timed writing .

Sample topics

Heilbroner, Robert. The Worldly Philosophers: The Lives, Times and Ideas of the Great Economic Thinkers

1) Create a booklet for each philosophers

2) Compare and contrast 2 philosophers

3) Research 10 articles relating to economy theories related in this book- write abstract and relationship

• Two Topic Paper using APA format one per nine weeks consisting of 6 -8 pages , footnotes and bibliography. Topics will discussed at a later date.

Presentations

• Power point presentation of topics such as:

Monetary Policies vs fiscal Policies

The Fed

• Skits, puppet show or video on an economic concept

Examination

The AP exam

70 minutes multiple choice section and 60 minutes free-response section with a mandatory 10 minute reading to be able to write notes, sketch graph and planning and 50 minutes writing . Questions will included content as well as graphical analysis

Course test and Unit Test

Student will taking the following types of exam

• Chapter test consisting of about 30 to 50 multiple choice questions and Free- Response Questions.

• Essay Exam- 4 free response essay with rubric or position paper in class

• Unit Exam- college- board style with 60 multiple choice and 4 free response with a rubric

Grading Policies

Will use the school board grade scales for letter grades and percentages

Double or triple score weight single or double weight

Unit Exams Class work

Chapter Tests Quizzes

Essay Writing Journal Assignments

Presentation Homework Assignments

Participation

• No work will be accepted late without valid excused absence.

• Long term Projects will have a 15 point deduction with a valid excused absence. These project can be turned in a week earlier.

• Participating in an activity such as i.e. field trip, club function, college fair or sporting event in which you leave during the school day all homework must be turned in before departure. It will not be accepted late.

• Participating in an activity in which you will absent for an extended time period a DUE DATE for assignment will be issued. If you do not complete assignments by the established due date, assignments will not be accepted.

Academic Integrity

All students will be held to the highest standards of academic integrity. Violation of these standards will be subject to punishment including loss of credit on any assignment!!!!!!!!!

AP MACROECONOMIC OUTLINE AND ASSIGNMENTS

UNIT I : Basic Economic Concepts (2 weeks)

Purpose:

Outline:

Unit I : Basic concept

a. Scarcity, choice and opportunity cost

b. Production possibilities curve

c. Comparative advantage, absolute advantage, specialization and exchange

d. Demand , supply, and market equilibrium

e. Macroeconomic issues: business cycle, unemployment , inflation and growth

Resources

Textbook: McConnell Chapter 1,2,3,6

Video Resources : Economic U$A – Resources and scarcity: What is economics all about?

Paul Solomon video for McConnell, Brue Chapter 1,2,3,6,

Workbook Morton –

Lesson 1- Scarcity, Opportunity Cost, Production Possibilities and Comparative advantage

Lesson 2 demand

Lesson 3 Supply

Lesson 4 Equilibrium Price and quantity

Lesson 5 Elasticity

Graphs : Production Possibilities

Demand and supply Curve showing equilibrium, showing shifts in demand and supply

Unit II: Measurement of Economic Indicators (3 weeks)

Purpose:

Outline

II: Measurement of Economic Performance

a. National income accounts

1. Circular flow

2. Gross domestic product

3. Component 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. Cost of inflation

c. Unemployment

1. Definition and measurement

2. Types of unemployment

3. Natural rate of unemployment

Resources

Textbook: McConnell Chapter 7,8

Video resources: Economic U$A- what is GNP?

Solomon Video- Chapter 7 , 8

Workbook Unit 2 Morton activities 12-17

Lesson 1 Macroeconomic and Circular Flow

Lesson 2 Macroeconomic Goals and GDP

Lesson 3 Price Index and inflation

Lesson 4 Unemployment

Lesson 5 Business cycle

Graphs Circular Flow of economic Activity

Business Cycle

Unit III : National Income and Price Determination(3 weeks)

Purpose:

Outline

National Income and Price Determination

A. Aggregated demand

1. Determinants of aggregated 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 run

3. Actual versus full employment output

4. Economic fluctuation

Resources

Textbook : McConnell Chapter 9, 11

Video resources Economic U$A- Supply creates it own demand

Solomon video- Chapter 9 and 11

Workbook Morton Activities 20-29 Unit 3 Aggregate demand and Aggregate Supply: fluctuations in outputs and Prices

Lesson 1 Keynesian Model

Lesson 2 Investments

Lesson 3 aggregated demand

Lesson 4 Aggregated supply

Lesson 5 Short-run equilibrium

Lesson 6 Aggregate supply and Aggregate demand Analysis continued

Lesson 7 Long run Economy

Graphs: Investment Curve

Aggregate demand and short-run aggregate supply curve

Aggregate demand and long-run aggregate supply curve

Unit IV: Financial Sector(3 weeks)

Purpose:

Outline

IV: Financial sector

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

7. Loanable fund market

b. Central bank and control of the money supply

1. Tools of central bank policy

2. Quantity theory of money

3. Real versus nominal interest rate

Unit 4

Textbook: McConnell Chapter 13,14,15,29

Video resources: The Fed today

Solomon :Chapter 13,14,15,29

Workbook: Morton : Activities 34-39 Unit 4 Money, Monetary Policy and Economic

Stability

Lesson 1 Money

Lesson 2 equation of exchange

Lesson 3 Financial intermediaries

Lesson 4 the federal reserve system and its tools

Lesson 5 Money Market and Monetary Policy

Lesson 6 Interest rates and Monetary policy in the Short Run & Long

Run

Graphs: Money market

Loanable funds Market

Investment demand Curve

Unit V: Inflation, Unemployment and Stabilization Policies (3 weeks)

Purpose:

Outline:

V: Inflation, unemployment and Stabilization policies

a. Fiscal and monetary policies

1. Demand-side effects

2. Supply side effects

3. Policy mix

4. Government deficits and debt

b. Inflation and unemployment

1. types of inflation

a. demand pull inflation

b. cost-push inflation

2. the Phillips curve: short run versus long run

3. Role of expectations

RESOURCES

Textbook: McConnell Chapter 12,15,16,18

Video resources: Solomon Chapter 12,15,16,18

Workbook Morton Activities 43-46 Unit 5 Monetary and fiscal Policy Combinations: stabilization Policy In the Real World

Lesson 1 Policy Lags and Crowding out Effects

Lesson 2 Monetary an Fiscal Policy Interact

Lesson 3 Phillips Curve and stabilization policy

Lesson 4 Economic Growth

Lesson 5 Macroeconomic theories

Graphs: Aggregated demand/supply model

Phillips Curve

Unit VI: Economic Growth and Productivity (1 week)

Purpose:

Outline

VI: Economic Growth

A. Investment in human capital

B. Investment in physical capital

C. Research and development and technological progress

D. Growth policy

Resources

Textbook: McConnell Chapter 17

Video resources: Solomon Chapter 17

Workbook: Morton Activities 47

Graphs: Production Possibilities

Aggregate demand/supply model

Unit 7: Open economy; International Trade and Finances (1 Week)

Purpose

Outline

VII: Open Economy: International Trade and Finance

a. Balance of payments accounts

1. Balance of trade

2. Current accounts

3. Capital account

b. Foreign exchange market

1. Demand for and supply of foreign exchange

2. Exchange rate determination

3. Currency appreciation and depreciation

c. Net exports and capital flows

d. Links to financial and good markets

Resources

Textbook : McConnell Chapter 6,37,38

Video: Solomon Chapter 6,37,38

Workbook: Morton Activities 49-55 Unit 6 International Economic

Lesson 1 International trade

Lesson 2 Government Intervention in International trade

Lesson 3 International Finance

Lesson 4 Monetary and fiscal Policy in a global economy

Graph: Production Possibilities

Foreign Exchange Market

-----------------------

The purpose of this unit is for student to be will be provided a foundation of the fundamental understanding of the concept of macroeconomics. Student will be introduce to economic concept of scarcity , trade-off and opportunity cost. The will able to distinguish between absolute and comparative advantage and its impact on trade between individuals and countries. Student will understand the differences of functions and policies of economic systems. Students will be able understand supply and demand are how they are used to analyze the workings of a free market economy. This unit will also explore the dynamics of the business cycle and influence of unemployment, inflation and economic growth.

In this unit student will introduced to the circular flow of income and product One of the concept introduce in this section is gross domestic product. It will be important to understand what it is how it is measured and to able to distinguish between real and nominal gross domestic product. Another concept will be unemployment. Student will able to understand the causes of unemployment, the cost of unemployment and how unemployment rate is determined . student will also understand factors affecting unemployment and the measurement of natural rate of unemployment. In this unit inflation, price indices such as CPI and gross domestic product deflator will be introduced . Students will be to understanding how indices are constructed and used to convert nominal values into real values.

The units will introduced aggregated supply and aggregated demand and how it determines equilibrium of national output and price levels. Students will be able to analyze the impact of economic fluctuations on the economy’s output and price level in the short run and the long run. In this unit there will be extensive study of aggregated demand components of consumption, investment, government spending and net exports and will examine aggregate demand curve slope downward and how changes in the determinants affect aggregated demand curve. Student will be introduced to spending-multiplier concept and the impact of crowing out . student will understand the importance of sticky-price and sticky-wage models and their implication on aggregated supply curve in comparison to flexible price and wages

In this unit student will understand how monetary policy is determine and implemented.

Students will be introduced to what is money supply and money demand and what

factors affect each one. Students will understand how the Federal reserve functions and

implements monetary policy. They will also be able understand and define money,

financial assets such as stocks and bond, measure money supply and the value of money .

It is important to introduce multiple- deposit expansion, money creation using T- accounts

and use money multiplier. Understanding on of money supply and money demand is

important to investigate how equilibrium in the money market determines the equilibrium

of interest rates. Student will understand the quantity theory of money, distinguish

between nominal and real interest rate , identify tools of banking policy and this impact on

money supply and interest rate

In this unit the implementation of public policy will be studies. Public policy will affect an economy’s output, price level, level of unemployment in the short run and long run. Student will be able distinguish between monetary and fiscal policy and understand their interaction. This unit track short-run and long-run effects on supply shocks, introduction of the Phillips curve to help students understand inflation-unemployment trade-off and how these trade-off may differ in the short and long run. Student will understand the impact of and economic effects of government budget deficits, crowding out, national debt and explore the relationship of between deficits, interest rate and inflation.

In this unit student will understand the role of productivity in raising real output and the standard of living. They will also understand the role of investment in human capital and physical capital, research and development and technical progress in raising productivity. Student will understand how public policies influences the long-run economic growth of an economy

In this unit student will have an understanding of the how open economy interacts with the world in goods market and financial markets and understand trade balance, distinguish between current account balance capital account balance and transaction and balance of payment accounts. This unit focus on foreign exchange market and examine how the equilibrium rate is determined. Student will have an understanding of how market forces and public policy affect currency demand and supply and appreciation and depreciation of currency . They will have an understanding of how capital flow affect exchange rated , depreciation or appreciation of currency affect country’s net exports. They will also studies trade restrictions and the impact on the economy and how international payment system help or hurt trade and how domestic policies affect international finance and trade

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