Sixth Grade Mathematics Syllabus



HERITAGES HIGH SCHOOL MACROECONOMICS COURSE SYLLABUS

School Year _2018 - 2019___

|Course Name |A.P. MACROECONOMICS |Course Code |45.0620040 |

|School Name |Heritage High School |Teacher Name |Mr. Lancelot Gittens |

|School Phone Number |770-482-7166 |Teacher Email |lgittens@rockdale.k12.ga.us |

|School Website | |Teacher Website | |

Course Description: AP Macroeconomics is a college level course that will explore basic economic concepts such as measurements of economic performance, national income and price determination, banking, stabilization policies, economic growth, and international trade. The goal of economic thinking is to examine how rational individuals, firms, and government make choices when faced with the economic concept of scarcity.

Students and parents need to understand that this is a college level class. It is imperative that students spend a great deal more on this class than they would an ordinary class. In many ways economics can come across as a foreign language and students need to stick with it daily or they will fall behind.

Exam Date: Wednesday, May 15, 2019 12:00pm

Exam Preparation: Review sessions will be given for four weeks before the exam.

Upon completion of the course it is hoped that students will walk away with a better understanding of the global world in which they live, the importance of economics in their life, and future economic prospects of the globalized society.

Curriculum Overview

The following academic concepts will be covered. THIS IS ONLY A GUIDE AND IS SUBJECT TO CHANGE.

|CURRICULUM OVERVIEW |

|Unit I: Basic Economic Concepts – Chapters 1, 3, 4, 31, 32, 33, – 4 weeks |

|Scarcity, Choice, and Opportunity Cost |

|Production Possibilities Curve |

|Comparative Advantage, Specialization, and Exchange |

|Demand, Supply, and Market Equilibrium |

|Macroeconomic Issues: Business Cycle, Unemployment, Inflation, Growth -Chapters |

|Quiz: August 27 A-day August 28 B-day |

|Unit II: Measurement of Economic Performance – 4 weeks |

|National Income Accounts – Chapter 23 |

|Circular Flow |

|Gross domestic product |

|Components of gross domestic product |

|Real versus nominal gross domestic product |

|Inflation Measurement and Adjustment -Chapters 23, 24 |

|Price Indices |

|Nominal and real values |

|Costs of inflation |

|Unemployment – Chapter 28 |

|Definition and Measurement |

|Types of Unemployment |

|Natural rate of unemployment |

|Quiz: September 24 A-Day September 25 B-Day |

|Unit III: National Income and Price Determination – 6 weeks |

|Aggregate Demand – Chapter 33 |

|Determinants of aggregate demand |

|Multiplier and crowding-out effects 34 |

|Aggregate Supply – Chapter 33 |

|Short-run and long-run analyses |

|Sticky versus flexible wages and prices |

|Determinants of aggregate supply |

|Macroeconomic Equilibrium – Chapters 17, 33 |

|Real output and price level |

|Short run and long run |

|Actual versus full-employment output |

|Economic fluctuations |

|Quiz: November 5 A-day November 6 B-Day |

|Unit IV: Financial Sector- Chapters 26, 29, 30, 34 – 5 weeks |

|Money, Banking, and Financial Markets Chapters 26, 27, 28 |

|Definition of Financial assets: money, stocks, bonds |

|Time value of money (present and future value) |

|Measures of money supply |

|Banks and creation of money |

|Money demand |

|Money market |

|Loanable funds market |

|Central Bank and Control of the Money Supply – Chapters 26, 28 |

|Tools of central bank policy |

|Quantity theory of money |

|Real versus nominal interest rates |

|Mid-Term Test: December 10 A-Day December 11 B-day |

|Unit V: Inflation, Unemployment, and Stabilization Policies – Chapters 31, 32 – 5 weeks |

|Fiscal and Monetary Policies – Chapters 31, 33 |

|Demand-side effects |

|Supply-side effects |

|Policy mix |

|Government deficits and debts |

|Inflation and Unemployment – Chapter 32 |

|Types of inflation – AP Test Prep Workbook |

|The Philips curve: short run versus long run |

|Role of expectations |

|Quiz: February 11 A-Day February 12 B-Day |

|Unit VI: Economic Growth and Productivity– Chapters 24, 25 – 1 week |

|Investment in Human Capital |

|Investment in Physical Capital |

|Research and Development, and Technological Progress – Chapter 25 |

|Growth Policy |

|Note: **There will be no quiz for this section. These concepts will be on Unit VII quiz |

|Unit VII: Open Economy: International Trade and Finance – Chapters 34, 35 – 4 weeks |

|Balance of Payments Accounts – Chapter 35 |

|Balance of trade |

|Current Account |

|Capital Account |

|Foreign Exchange Market – Chapter 35 |

|Demand for and supply of foreign exchange |

|Exchange rate determination |

|Currency appreciation and depreciation |

|Net Exports and Capital Flows |

|Links to Financial Goods Market |

|Quiz: March 18 A-Day March 19 B-Day |

|4 Weeks will be devoted to review for the AP Exam and the Final |

| |

|All students who have missed 3 or more days unexcused, 9 days total (excused or unexcused) or who have a grade of 80 or lower, are required to take |

|the two-part final exam. Date TBD |

|Graphs are extremely important in Economics. Students must be able to construct them as well as analyze them. Here is a list of the required graphs: |

|Production Possibilities Curve |

|Demand and Supply Graphs |

|Circular Flow Model |

|Business Cycle |

|Aggregate Demand and Aggregate Supply |

|Phillips Curve |

|Money Market Graph |

|Loanable Funds Market |

|Flexible Exchange Rates |

|Aggregate Expenditure Model |

|Banking balance sheet |

|Absolute vs Comparative advantage |

|Currency Exchange |

Course Outline:

Weeks Unit of Study, Topics, and Student Objectives Resources, Assessments, and Strategies

Unit I Basic Economic Concepts (8-12%)

Topics:

Scarcity= limited quantities of resources to meet unlimited wants

Opportunity cost= the most desirable alternative given up as the result of a decision

Choice= making a decision with respect to an opportunity cost

Normative economics= An economic decision which involves a value judgment

Positive economics= “The analysis of facts and data to establish scientific generalizations about economic behavior”

Comparative advantage= A lower opportunity cost than that of another producer

Absolute advantage= The ability to produce more efficiently than another producer(fewer inputs

Demand= a schedule showing the amounts of a good that buyers wish to purchase at various prices during a particular time period.

Law of demand= The principle, ceteris paribus, that an increase in the price of as good will decrease the quantity demanded of a particular good

Supply= the amounts of a good or goods that sellers are willing to sell at a particular price

Law of supply= The principle that, ceteris paribus, an increase in the price of a good will increase the quantity of it supplied

Market equilibrium=The level of output and price at which the quantity demanded equals the quantity supplied.

Objectives:

_ Explain the concepts of scarcity and opportunity cost as they relate to economics. Be able to draw and explain the use of the PPF. Be able to explain comparative advantage.

_ Define demand, supply, the law of demand and the law of supply. Describe the determinants of

Supply (demand) that will shift the curves. Define and demonstrate supply, demand and equilibrium (price; quantity) by using a graph.

Resources:

Mankiw text Chapters 1, 2, 3 and 6, Study Guide, Free to Choose Chapter 1 reading, Free to Choose video excerpt, McConnell Test Bank III

Assessments:

Short answer questions and practice quizzes for homework. PPF, comparative advantage calculations and supply/demand graphs for in class assignments multiple choice quizzes (20-25 questions)

Unit One test-multiple choice questions and AP free response questions

Labs & Other Strategies:

_ Modeling of concepts, models (such as PPF and supply/demand graphs) by teacher

_ Student practice with examples on paper and on erasable boards

_ Lecture

_ Skills- Draw a PPF graph and label it properly

_ Skills- Draw a supply and demand graph and label it correctly

II. Measurement of Economic Performance (12-16%)

Definitions and Concepts/Topics:

Business cycle- Recurring increases and decreases in the level of economic activity over periods of years; consists of peak, recession, trough, and recovery phases.

Peak- a phases in which the business cycle has reached a temporary maximum. The economy is at full employment and the level of real output is close to the economy’s capacity

Recession- A decline which lasts 6 or more months in which there is a

Resources:

Mankiw text Chapters 33, 23, 24 and 28, Study Guide, Morton Advanced Placement Student Activities, McConnell Test Bank III

Assessments:

Short answer questions and Practice questions for homework decline in total output, income, employment and trade. There is a contraction of business activity in many sectors of the economy.

Trough= The lowest level of a business cycle in which output and employment “bottom out.”

Recovery- A phase in which output and employment rise toward full employment. The price level may rise during this period.

Unemployment rate= the percent of the labor force unemployed at a given time

Labor force- Persons 16 years of age or older who are not institutionalized and who are employed or unemployed(and seeking work).

Unemployment calculation- #of unemployed/ Civilian Labor Force

Types of Unemployment-

(1) Frictional- Unemployed because you are between jobs. This type of unemployment is considered voluntary ; (2) Seasonal – You are out of work because of the time of year. Examples would be agricultural workers or construction workers;

(3) Structural- Unemployed because your skills are not demanded by employers, you lack skills needed for employment, or you cannot move to locations where jobs are available;

(4) Cyclical – This type of unemployment is caused by insufficient total spending.

Inflation- A sustained rise in most prices in an economy

Types of inflation-

(1) Demand-pull- Increases in the price level (inflation) resulting from an excess of demand over output at the existing price level , caused by an increase in aggregate demand.

(2)- Cost-push inflation – Increases in the price level(inflation) resulting from an increase in resource costs( costs of the factors of production) and hence in per-unit production costs; inflation caused by a reduction in aggregate supply.

Who is hurt and helped by inflation:

Fixed Income receivers

Hurt Real income falls ; A landlord is paid back with cheaper dollars

Savers Hurt The real value of accumulated savings deteriorates giving the individual lower purchasing power

Creditors Hurt If the price level increases during the term of a loan, the creditor is paid back in “cheap” dollars

Flexible income receivers

Debtors

Helps, Generally speaking the borrower borrowed “dear” dollars and pays back in “cheap” dollars.

National Income Accounting- The techniques used to measure the overall production of the economy and other related variables for the nation as a whole.

Circular Flow Model- The flow of resources from households to firms and of products from firms to households . These flows are accompanied by reverse

flows of money from firms to households and from households to firms.

Gross Domestic Product- The total market value of all goods and Practice GDP , price index, and inflation calculations

Ch. Quizzes(multiple choice)

Unit II test- multiple choice and free response questions

Labs & Other

Strategies:

_ Modeling the calculations

_Independent practice

_ Lecture

Skills:

1. Be able to compute a GDP

2. Be able to calculate a price index

3.Convert nominal to real GDP

Vocabulary of the section:

Gross Domestic Product-services produced annually within the borders of the U.S. , whether by U.S. or foreign-supplied resources.

Gross National Product- a measure of incomes of residents of a country, including income they receive from abroad by subtracting similar payments made to those abroad.

Real Gross Domestic Product- (GDP) GDP adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year, the index expressed as a decimal.

Nominal Gross Domestic Product- The GDP measured in term of the price level at the time of measurement(unadjusted for inflation).

GDP deflator- The price index found by dividing nominal GDP by real GDP; a price index used to adjust money (or nominal GDP to real GDP

Consumer price index(CPI)- An index that measures the prices of a fixed “market basket” of some 300 goods and services bought by a “typical” consumer.

Producer price index-The Producer Price Index (PPI) program measures the average change over time in the selling prices received by domestic producers for their output. The prices included in the PPI are from the first commercial transaction for many products and some services.

Nominal vs. real income- Nominal income is the number of dollars received as wages, rent, interest, or profits. Real income is a measure of the amount of goods and services nominal income can buy; it is the

purchasing power of nominal income, or income adjusted for inflation.

Natural rate of unemployment- The full employment unemployment rate; the unemployment rate occurring when there is no cyclical unemployment and the country is achieving its potential output.

Objectives:

_ Explain and calculate GDP, GNP

_ Calculate the price index,

_ Differentiate between real and nominal GDP

_ Explain what included and excluded in the GDP

_ Explain the definitions and components of economic growth

_ Describe the phases of the business cycle

_ Explain the types of inflation and who is hurt or helped by inflation

III. National Income and Price Determination (10-15%)

Resources:

Mankiw text Chapters 34 and sections of 9, 10 , Study Guide, Morton Advanced Placement Student Activities,

McConnell Test Bank III

Assessments:

_ Chapter questions,

_ Graph activities,

_ Chapter quizzes and online quizzes (all multiple choice)

_ Free response questions (test grade)

Unit III multiple choice test

Labs & Other Strategies:

_ Modeling graphs and determinants of AD/AS

_ Graphing long and short run AS

_ Practicing FRQ’s with students

_ Lecture

SKILLS-

1. Students will be able to draw and label the AD/AS Graph; the LRAS Graph

2. Students will use the graphs to explain changes in the economy.

3. Students will calculate the multiplier and apply it.

Definitions and Concepts/Topics:

Aggregate Demand- is a schedule or curve that shows the amounts of

real output that buyers collectively desire to purchase at each possible price level.

Aggregate Supply- is a schedule or curve showing the level of real

domestic output that firms will produce at each price level.

Aggregate Demand Curve-

Why is it down sloping? (1) The real Balances Effect,

(2) the Foreign Purchases Effect,

(3) the Interest Rate Effect

This shows an inverse relationship between the price level and real GDP.

Real Balances Effect- A higher price level reduces the purchasing power of the accumulated savings. In other words, the money that you have saved is worth less in purchasing power if prices are higher.

Interest Rate Effect- Less real output is demanded when interest rates are higher. Interest rates increase when the demand for money increases.

Foreign Purchases Effect- When the U.S. price level increases relative to the price level in other countries, foreigners buy fewer of our goods causing domestic exports decrease.

Multiplier- The factor by which a change in a component of Aggregate Demand like investment or government spending , is multiplied to lead to a larger change in equilibrium national output.

Formula= ΔC/ΔY= MPC;

1-MPC=MPS

1/MPS= M(multiplier)

Crowding Out Effect- A rise in interest rates and a resulting decrease in planned investment caused by the Federal government’s increased borrowing in the money market.

Real Output-The total amount of goods and services produced within an economy in a given period of time valued in constant currency.

Sticky prices- Prices that do not adjust or adjust only slowly toward anew equilibrium.

Short Run Aggregate Supply- In the short run nominal wages are fixed and based on the price level.

Long Run Aggregate Supply- The long run aggregate supply curve associated with a time period in which input prices are fully responsive to changes in the price level.

Aggregate Demand Determinants

1. Change in Consumer Spending

a. Consumer Wealth

Includes stocks, bonds, homes and land. An increase in wealth encourages people to save less and buy more. A decrease in the wealth effect encourages people to save more and buy less.

b. Consumer Expectations

Consumers will buy more if they expect their incomes or prices to increase in the future. Conversely, they will buy less if they expect their incomes or prices to decrease in the future.

c. Household indebtedness Consumers cut current spending if their debt level is high.

d. When the debt level is low, they are more likely to spend.

Tax cuts increase disposable income and subsequently consumer spending. The reverse is true if taxes increase.

2. Change in Investment Spending

a. Interest rates

An increase in the interest rate decreases investment while a decrease in interest rate increases investment.

b. Expected returns

* Expected future business conditions-If business owners expect good conditions in the future, they will invest more. However, if they believe business conditions will be poor in the future, they will decrease investment

* Technology-New and improved technology will increase the return on investments

* Degree of excess capacity-An increase in excess capacity( idle capital) will decrease the demand for investment. If they are using more capital, they will increase expenditures on investment

* Business taxes-An ↑ in business taxes will ↓ after tax profits and ↓ demand for investment. The reverse is true when business taxes ↓.

3. Change in Government Spending-An ↑in government expenditures will ↑aggregate demand.

4. Change in Net Export Spending

a. National Income Abroad An ↑in incomes abroad may increase their demand for our goods. A ↓in incomes abroad will have the opposite effect.

b. Exchange rates If the $ depreciates in relation to the €, our goods will be cheaper and they will buy more of our goods. This increase our aggregate demand. If, however, the $ appreciates in relation to the €, our goods will be more expensive and they will buy fewer U.S. goods. This will decrease our AD.

Aggregate Supply Determinants

1. Change in input prices

♦ Domestic Resource Availability

◊ Land An ↑ in land resources such as a discovery of new mineral resources or technology to develop new land resources will lower the input prices. The opposite is true with the ↓in land resources.

◊ Labor An ↑in wages will ↑per unit costs for the firms. A ↓ in wages will ↓per unit production costs.

◊ Capital When the quantity and quality of capital stock ↑, this will increase AS. A ↓ in the quantity and quality of capital stock will decrease aggregate supply.

◊ Entrepreneurial Ability An ↑ in entrepreneurial ability will ↑ AS.

b. Prices of imported resources An ↑ in the price of imported resources such as oil will ↓ AS and a ↓ in the cost of imported resources will ↑ AS>

c. Market power The control that one organization such as OPEC has over the resources will either ↑ or ↓ the input costs.

2. Change in productivity

An ↑ in productivity which refers to the number of inputs needed to produce real output will shift AS to the right. The opposite is true with a ↓ in productivity.

3. Change in legal institutional environment

a. business taxes and subsidies-An ↑ in excise, payroll, and sales taxes will ↑ the per unit costs. A government subsidy or tax break will reduce costs and shift AS to the right.

b. Government regulations-Government regulations increase per unit costs and decrease AS.

Deregulations will decrease per unit costs and increase AS.

Objectives:

_ Define and explain aggregate demand and supply

_ Explain why the AD curve is down sloping.

_ Be able to graph aggregate demand, aggregate supply and Long run aggregate supply.

_ Explain the determinants of aggregate demand and supply

_ Be able to calculate the multiplier and apply it to the economy

_ Explain how a market economy reaches equilibrium price and output.

IV. Financial Sector (15- 20%)

Concepts and definitions/Resources:

McConnell text chapters 13,14 and 15,

Study Guide,

Morton Advanced Placement Student Activities,

Topics:

Money- Any item that is generally acceptable to sellers in exchange for goods and services.

Money has three functions

(1) Medium of exchange,

(2) Unit of Accounting, and

(3) Store of value

Stock- an ownership share in a corporation. It is not considered “money.”

Bond- A financial device through which a borrower (a firm or government) is obligated to pay the principal and interest on a loan at a specific date in the future.

Time Value of Money= FV=PV*(1+K)n

Measures of the Money Supply- M1, M 2, M 3,

M1 = currency, checkable deposits,

M2 = M1 + money market deposit accounts, (MMDA), Money Market Mutual Funds(MMMF), savings (value under $100,000)

M3= M2 + Savings valued over $100,000

Creation of Money- The banks “create” money by making loans. Banks are allowed to loan all excess reserves. The FED required banks to keep a percentage of their deposits as required reserves.

The formula which is used to demonstrate the expansion of the money supply is- 1/RR (reserve requirement) X the original deposit or the excess reserves.

Money Demand- There are two reasons to hold money-

(1) transaction demand and

(2) asset demand.

Transaction demand- The primary determinant of the transaction demand for money is the level of nominal GDP. Consumers need money for rent, utilities, and food.

Businesses need money for labor and basic materials.

If price increase they will demand more money. This is an example of money as a medium of exchange.

Asset demand- As a store of value people hold money as an asset.

This is a liquid asset and their advantages to holding it instead of other financial assets such as bonds or stocks. If the % rate increases, the opportunity cost is too high so the asset demand decreases. It is related to the interest rate.

Money Market- The marketing which the demand for money and the supply of money determine the interest rate(or the level of interest rates) in the economy.

Loanable Funds Market- This is the money available for lending and borrowing.

Quantity theory of money- The theory that velocity is constant, so that changes in the money supply lead to proportional changes in nominal income(which also equals the value of output.

Formula= MV=PQ

MV= amount spent by purchasers of output.

PQ= amount received by sellers of output (nominal GDP)

Federal Funds Rate- Interest rate charged by banks for overnight loans to other banks. This is a target interest rate for the FED.

Real vs. Nominal interest rates-real interest rate is equal to the nominal interest rate minus the rate of inflation.

Bonds and interest rates- Lower bond prices lead to higher interest rates while higher bond prices lead to lower interest rates.

Formula= FVX%rate= interest interest/price of bond = rate of return

Example: FV(face value) $10,000 X % rate 10% = $1000

$1000/$8000(selling price of the bond) = 12.5%

Three Tools of the FED

Reserve Requirement-The % of deposits that a bank is required to keep on reserve

Assessments:

Major Graph project(directions are at the end under teacher resources) (test grade)

McConnell Test Bank III

Chapter quizzes and online quizzes

Homework –chapter problem sets and Morton book activities Unit tests and FRQ’s

Labs & Other Strategies:

_ Lecture and discussion

_ Graphs on the board presented by students

_ Problem practice

SKILLS:

1. Be able to draw and label the money market, loanable funds, money demand and investment graphs.

2. Be able to apply economic concepts using the foregoing graphs.

3. Be able to calculate the rate of return on bonds.

4. Describe and explain the T-accounts in the creation of money by the FED

5. Be able to use the MV=PQ formula.

Discount Rate-The interest rate that the FED charges member banks

Open Market Operations-Buying and selling of securities by the Federal Reserve Open Market Committee

Monetary Tools

ΔMS

Δ% rates

Δ Ig and C

Δ Aggregate Demand and GDP

Recession ↑ MS

Open Market Operations Buy securities ↑MS

Discount rate

Reserve Require

Inflation ↓ MS

Open Market Operations Sell Securities ↓ MS

Discount Rate

Reserve Requirement

Objectives:

_ Explain the functions of money

_ Define the money supply and the demand for money

_ Explain the relationship between the GDP, the demand for money and the interest rate

_ Describe the structure and functions of the FED

_ Describe the tools of the FED and the FED funds target

_ Explain how the FED uses the tools to expand /contract the money supply and reach price stability

_ Describe the cause-effect chain between monetary policy and changes in the equilibrium GDP

_ Show the impact of interest rate changes on investment demand

Unit V Study Title Inflation, Unemployment, and Stabilization Policies (20-30%)

Resources:

McConnell text chapters 12, 18 and 19, Study Guide,

Morton Advanced Placement Student Activities, McConnell Test Bank III

Assessments:

Test bank III problem sets for homework Online quizzes Multiple choice quizzes Free response

Topics: Concepts and definitions

Fiscal Policy- Government policy on taxing and spending

Expansionary Fiscal policy- an ↑GS or a ↓ T → an ↑AD in the case of a recession

Contractionary Fiscal Policy- A ↓GS or an ↑T → a ↓AD in the case of inflation.

Demand Side Policy – This policy was first introduced by J.M. Keynes and the emphasis is on ↑ AD to pull the economy out of a trough. There is an ↑GS → ↑AD .

Criticisms of Demand Side Policy-

(1) It leads to deficit spending and Resources:

(2)There are three lags which slow the impact on the economy

Lags- (1) recognition lag, (2) administrative lag, and (3) operational lag

Supply Side Policy- Supply side policy is the creation of Arthur Laffer and Robert Mundell. The emphasis is on Aggregate Supply. The idea is that lower marginal tax rates encourage business investment which increases aggregate supply. Tax rates and business regulations were both lowered during the Reagan administration. The idea was to target aggregate supply, increasing it to fight stagflation.

Criticisms- Many economists feel that there is a greater impact on AD as a result of these policies.

Government deficits- Government spending is greater than revenues from taxes in one year.

Government debt- The accumulated deficits from previous years.

Financing deficits –

(1) borrowing which leads to an increase in demand for loanable funds and an increase in the interest rates.

(2) The assistance of the Central Bank in creating money which leads to inflation.

Money creation is the most expansionary.

Debt reduction- (1) use surplus to pay off debt which may lead to inflation or (2) impounding – allowing the surplus to remain idle. Impounding is the most contractionary.

Phillips curve- (Short run)- This graph demonstrates the trade-off between inflation and unemployment. Lower unemployment leads to high inflation and vice versa.

Phillips Curve (long run).- This curve is vertical because there is no relationship between inflation and unemployment in the long run.

Role of Expectations- Expected inflation measures how much people expect the price level to change.

Natural rate of unemployment= Actual rate of unemployment expected inflation

Fiscal Policy and the Net Export Effect

Expansionary Fiscal Policy Contractionary Fiscal Policy

Problem: recession Problem: Inflation

Expansionary Fiscal Policy Contractionary Fiscal Policy

Higher Domestic Interest Rate Lower Domestic Interest Rate Increased Foreign Demand for Dollars Decreased Foreign demand for Dollars

Dollar appreciates Dollar Depreciates

Net exports decline

(Aggregate Demand Decreases partially offsetting the expansionary fiscal policy)

Net exports increase

(Aggregate demand increases partially offsetting the contractionary fiscal policy)

_ Analyzing short and long run Aggregate Supply

Objectives:

_ Explain the tools of fiscal policy

_ Explain the difference between discretionary and nondiscretionary fiscal policy

_ Describe the use of expansionary and contractionary fiscal policy tools

_ Distinguish between deficit spending and debt.

_ Explain how fiscal policies attempt to stabilize the questions(tests) Unit Tests(multiple choice) Graphs on board, erasable boards or computer .

Strategies:

_ Modeling /lecture by teacher

_ Power points presentations of graphs and other information on stabilization policies by teacher

SKILLS

1. Be able to draw, label and apply the short and long run Phillips’ curve

2. Be able to use a short run aggregate supply curve to apply the concepts related to supply side economics economy

_ Explain crowding out and its impact on the economy

_ Show the cause-effect chain of fiscal policy and net exports

_ Describe the political and timing problems of fiscal policy

_ Be able to draw and apply the use of the short and long run Phillips curve

_ Explain how the policies impact our economy both internally and externally

_ Describe supply side policy and its pros and cons.

VI. Economic Growth and Productivity (5-10%)

Concepts and definitions

Economic growth- The growth of output generally measured by real GDP or real GDP per capita. It is the result of increase resources availability or increased productivity.

Productivity- The amount of goods and services produced from each hour of a worker’s time.

Human Capital- The knowledge and skills that workers acquire through education, training, and experience.

Physical capital- The stock of equipment and structures that are used to produce goods and services.

Natural resources- Land, rivers and mineral resources.

Technology- The body of knowledge and techniques that can be used to combine economic resources to produce goods and services.

Technological advance- New and better goods and services and new and better ways of producing them

Savings and investment- Essential for an increase in capital stock which leads to economic growth

Growth policy- Important elements

(1) Population growth- In general, too rapid growth in population leads to less growth.

(2) Property rights- In order for a price system to work, you must have respect for property rights.

(3) Political instability- Threatens property rights

(4) Trade- outward oriented policies (pro free trade) help growth. Instead of developing a particular good it may be cheaper to import it. This expands your PPF which leads to an increase in growth.

(5) R&D- The government helps R&D through NIH, NASA, NSF patents. Government incentives encourage R&D.

Resources:

McConnell text chapters 16 and 17, Study Guide, Morton Advanced Placement Student Activities, McConnell Test Bank III

Assessments:

_ Advanced Placement (Morton activities) for daily grades and practice

_ Teacher created activities on economic growth application for daily assignments

Test bank III problem sets Multiple choice quizzes FRQ’s (test grades)

_ Multiple choice unit tests

Strategies:

_ Modeling/lecture

_ Power point presentations

_ Cooperative student work on FRQ’s that are presented to the class

SKILLS:

1. Be able to demonstrate economics growth through the use of the LRAS and PPF graphs

2. Calculate increases in real GDP and per capita real GDP

3. Demonstrate productivity through the use of AD/AS graphs and the PPF curve.

Objectives:

_ Identify the main ingredients in economic growth

_ Explain how economic growth is measured.

_ Explain the supply (resource) factors in growth

_ Explain how the economic determinants of growth lead to productivity and higher living standards.

VII. Open Economy: International Trade and Finance (10-15%)

Resources: McConnell text37 and 38, Study Guide, Morton Advanced Placement Student Activities, McConnell Test Bank III

Concepts and Definitions:

Balance of Trade- The difference between a country’s import and export of goods.

Balance of payments- A summary of all of the firms, and government units of one nation and those of all other nations during a year.

Current account- The section in a nation’s international balance of payments that records imports of goods, services, and net investments and its net income.

Capital account- The section of a nation’s international balance of payments statement that records the foreign purchases of assets in the U.S. (creating monetary inflows) and U.S. purchases of assets abroad (creating monetary outflows).

Foreign Exchange Market- A market in which the money(currency) of one nation can be used to purchase the money of another nation.

Rate of Exchange- The price paid in one’s own money to acquire 1 unit of a foreign currency; the rate at which the money of one nation isexchanged for the money of another nation.

Exchange rate appreciation- An increase in the value of a nation’s currency in foreign exchange markets; an increase in the rate of exchange for foreign currencies.

Exchange rate depreciation- A decrease in the value of a nation’s currency in foreign exchange markets; a decrease in the rate of exchange for foreign currencies.

Floating/flexible Exchange Rate- A rate of exchange determined by the international demand for and supply of a nation’s currency.

Net exports and Capital Flows- Money coming into a country for investments or to buy a good are capital inflows; money going out of a country to invest or buy a good are capital outflows.

Linkages and capital flows- The market price or exchange rate of a nation’s currency is an unusual price; it links all domestic prices with all foreign prices . Exchange rates enable consumers in one country to translate prices of foreign goods into units of their own currency.

Determinants of Exchange Rates

Change in tastes

Ex. German cars decline in popularity in the U.S. and the Euro depreciates; The U.S. dollar appreciates

Change in Relative Incomes

Ex. France has a recession, reducing its imports, while U.S. real output and real incomes increase. This increases U.S. imports . The Euro appreciates and the U.S. dollar depreciates.

Change in Relative Prices

Ex. England experiences a 2% inflation rate compared to Mexico’s 10% rate. The British pound appreciates while the Mexican peso depreciates.

Change in Relative real Interest rates

Ex. The Bank of Japan increases interest rates while the FED does not take action. The Japanese yen appreciates while the U.S. dollar depreciates. Speculation Currency traders believe that China will have greater inflation than South Korea. The Chinese yuan will depreciate while the South Korean won will appreciate.

Objectives:

_ Explain why nations trade in order to redistribute resources and Increase production of goods and services

_ Explain the importance of comparative advantage Define terms related to trade such as the types of tariffs and other trade barriers

Assessments:

_ Problem sets from Test banks III

_ Using news articles to apply economic concepts learned in class.

_ Multiple choice quizzes

_ Graph and other activities from Morton student activities

_ FRQ’s

_ Multiple choice unit tests

Labs & Other Strategies:

_ Model foreign exchange graphs, trade barriers, comparative advantage and balance of payments

_ Lectures

_ Power points demonstrating graphs

SKILLS:

1. Be able to draw, label and apply the use of a foreign exchange graph

2. Be able to calculate the balance of payments for a capital and current account

3. Be able to calculate the comparative advantage

4. Use graphs to demonstrate the result of trade barriers

Explain the pros and cons of using tariffs

List the arguments for and against trade barriers

_ Explain the current flexible exchange market and how currencies or bought and sold

_ Explain how the value of a currency is determined in a flexible exchange rate system

_ Be able to calculate the balance of payment accounts

_ Explain how a country’s exports and imports increase or decrease the demand and supply of currencies

_ Explain the impact of a trade deficit

GRADING SYSTEM: It is believed that the most important assessment of student learning shall be conducted by the teachers as they observe and evaluate students in the context of ongoing classroom instruction. A variety of approaches, methodologies, and resources shall be used to deliver educational services and to maximize each student’s opportunity to succeed. Teacher(s) shall evaluate student progress, report grades that represent the student’s academic achievement, and communicate official academic progress to students and parents in a timely manner through the electronic grading portal.

|GRADING CATEGORIES |*GRADE PROTOCOL |

|Progressive Assessment - 65% |A 90 – 100 ~P (pass) |

|Summative Assessment or Assessment of Learning– 35% |B 80 – 89 ~F (fail) |

| |C 75 – 79 |

| |D 70 – 74 |

| |F Below 70 |

|CLASSROOM EXPECTATIONS FOR SUCCESS |

|STUDENT PROGRESS | |

| |Semester progress reports shall be issued each semester.  The progress of students shall be evaluated frequently|

| |and plans shall be generated to remediate deficiencies as they are discovered. Plans shall include appropriate |

| |interventions designed to meet the needs of the students. If the Student has a grade of 75 or lower a deficiency|

| |report and plan of remediation will be administered and sent home. Students are responsible for bringing home |

| |remediation to be signed by parents/guardian and return to the teacher. |

|ACADEMIC INTEGRITY | |

| |Students will not engage in an act of academic dishonesty including, but not limited to, cheating, providing |

| |false information, falsifying school records, forging signatures, or using an unauthorized computer user ID or |

| |password. |

|HOMEWORK | |

| |Homework assignments will be meaningful and be an application or adaptation of a classroom experience.  Homework|

| |is at all times an extension of the teaching/learning experience.  It will be considered the possession of the |

| |student and will be collected, evaluated and returned to the students via itslearning. |

| | |

| |Homework assignments will be posted on the appropriate platforms (Teacher web site, USATestprep, ITSlearning, |

| |etc.) in the appropriate format when given and submitted no later than the due date assigned. |

| | |

| |Late work will be accepted at the discretion of the teacher with a reduction of points after assignment is |

| |graded at a minimum of 10 points per day. |

| | |

| |In my class, I ask that you be prepared to discuss various topics. Have an opinion! I want to hear it and so do |

| |other students. We will discuss certain controversial subjects so come prepared to state your thoughts with |

| |facts to back it supported with independent research. |

| | |

| |Homework assignment may also be given and tracked through Remind101. |

| | |

| |Finally Current Events will be due weekly which directly relates to materials covered in the standard during |

| |that week. They must be completed in the specified format and submitted for grading on itslearning. The |

| |template Is located on my website gittenomic. |

|MAKE-UP WORK |When a student is absent because of a legal reason as defined by Georgia law or when the absence is apparently |

|DUE TO ABSENCES |beyond the control of the student, the student may be given an opportunity to earn grade(s) for those days |

| |absent to the discretion of the teacher. |

| | |

| |All Make-up work must be completed within the designated time allotted and established and will be asked to be |

| |submitted via e-mail for documentation purposes. |

| | |

| |If a student misses an assignment, they will receive an opportunity to make up the assignment. Requests for |

| |make-up work must be emailed no later than 2 days after missed day. If the absence was unexcused, they can |

| |request their make-up work during tutorial. Excused or unexcused, students will have 2 DAYS from the date of |

| |the absence to request, complete, and turn in their make up work before school/class hours. After the 2nd day |

| |has passed, the assignment will remain a ZERO and can only be made up with class incentive program. MAKE-UP |

| |WORK IS FOR STUDENTS WHO ARE ABSENT FROM CLASS. Additional assignments WILL NOT GIVEN TO AID FAILING STUDENTS |

| |IN ACHIEVING A PASSING GRADE which have not already completed required assignments. |

|SCHOOL EXPECTATIONS FOR SUCCESS |

|CLASSROOM EXPECTATIONS |This class follows all Rockdale County policies relative to appropriate school and classroom conduct as outlined|

| |in the Rockdale County Student Rights and Responsibilities brochure. Heritage High School standard expectations|

| |as explained in the Student Handbook also apply to this class. |

| | |

| |Students are expected to be alert, attentive during class, punctual, prepared for learning each day, respectful |

| |of the teacher and other students, as well as their property and rights. |

| | |

| |Cheating is a violation of school and county policies. Therefore, as a student at Heritage High School, |

| |students will not participate in any form of cheating on any type of assignment—either by copying another |

| |student’s answer(s), by having a cheat sheet, or by allowing others to copy my work. The first offense will |

| |result in a zero on that assignment; if there is a second offense, parents will be notified and a referral to an|

| |administrator, or the Instructional Principal, will be made. This grade cannot be made up. |

| | |

| |Tardiness to class are unacceptable without an appropriate excused HERO pass from an adult. Attendance in class|

| |is a mandatory part of your grade which you will receive points per week (10 points per day) for appropriate |

| |attendance. If you are tardy or absent without an appropriate excuse prior to or on your return you will |

| |forfeit your daily grade of 10 points. This is exercised to the teachers’ discretion. Excessive tardy (5 or |

| |more) and excessive absences (5 or more) may lead to significant grade reductions and failure of the class. |

|MATERIALS AND SUPPLIES |2 pocket folder labeled A.P. Economics |

| |Zip drive or USB Flash drive to save research materials needs for daily use. |

| |Items are due by the Friday from students first day of class |

| |Students are required to have both a number 2 pencil as well as a pen daily |

|EXTRA HELP | |

| |Additional time will be provided later in the semester for EOC purposes and AP test preparation. |

|PARENTS AS PARTNERS | |

| |As a parent/guardian of a student in Mr. Gittens’ class, you are expected to take the necessary steps and |

| |actions to assist your child to successfully pass this year including, but not limited to, classroom visits, |

| |signing required forms, and attending parent conferences. You also are responsible for monitoring Infinite |

| |Campus on a regular basis to ensure that you are aware of your child’s progress in Mr. Gittens’ class. |

Please Print, sign, and return the following page by no later than August 10, 2018 or the first Friday after your son/daughters first day in class.

MR. GITTENS RESERVE THE RIGHT TO CHANGE AND/OR ADJUST ANY SECTION OF THIS SYLLABUS AT ANY TIME TO MORE ADEQUATELY MEET THE NEEDS AND INTERESTS OF THE STUDENTS IN THIS CLASS.

I, THE PARENT/GUARDIAN OF __________________________ (PRINT STUDENT NAME) HAVE READ THE ENTIRE SYLLABUS AND BY SIGNING BELOW I AGREE TO ABIDE BY ITS CONTENTS. I also understand that it is my responsibility to monitor Infinite Campus on a regular basis to ensure that I am aware of my child’s progress in Mr. Gittens’ class.

PLEASE SIGN BELOW AND RETURN

I have read the syllabus.

Print Student Name _________________________________________________________

Student Signature___________________________________________________________

Print Parent/Guardian Name __________________________________________________

Parent/Guardian Signature____________________________________________________

Date_____________________________

Additional information to support continued contact:

|Information |Parent/Guardian |

|Day Time Phone Number | |

|Cellular Phone Number | |

|Home Phone Number | |

|Email Address | |

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