Download AP® Macroeconomics Course Summary outline

AP® Macroeconomics-Fall 2011
Course Requirements
Instructor information: Mr. Mark D. Stilkenboom
E-mail: [email protected]
Conference Period: B4
Room #329
Course Description
The purpose of this course is to give students a thorough understanding of the principles of economics that
apply to an economic system as a whole (hence macro). This course places particular emphasis on the study
of national income and price determination, and also develops students’ familiarity with economic
performance measures, economic growth, and international economics.
Textbook and website information
Required text:
McConnell & Brue 15th edition, Economics, McGraw-Hill Irvin
AP Practice Book:
Each Student will be provided with a Princeton Review AP practice book, which will be used during class
activities and will be returned to the instructor after the AP exam in May
Major Goals
It is my hope this course will create a lifelong interest in macroeconomics and instill the skills necessary to
be able to analyze economic policies and issues in the future. The course is taught using a variety of
strategies designed to appeal to all learning styles. This syllabus is designed to help you understand what it
will take for you to be successful in this class and on the AP Exam (May 17th).
Standards and Expectations
The course is the equivalent of a college course taught by a professor. College-level textbooks and
readings are essential. The material is demanding and only those truly committed to the AP philosophy and
exam should be in this class.
Collaborative Learning
Collaborative learning activities will be used regularly throughout the course. It is essential that you
exchange e-mail addresses with the other members of the permanent committee or collaborative learning
group that you are assigned to. The collaborative learning groups will be assigned numerous essay and
multiple-choice activities to complete that are modeled after AP test questions. The purpose of having the
students complete the activities in committees instead of individually is to allow them to be assigned more
sample questions and receive more timely feedback. The committee system also allows the students to help
each other master the more difficult concepts and reexamine concepts they may not have understood in the
teacher lecture.
Current Events
The student is required to keep up with current events and economic news at a national and international
level. Reading one of the major newspapers (e.g. New York Times, Wall Street Journal) at least twice a
week is highly recommended (some recent stories can be read online). Periodicals such as The Economist
also provide excellent insight. NPR Radio at 88.7 FM has in-depth news programming in the mornings and
in the late afternoon. In regards to TV, PBS (channel 8), CNN or CNN International, Fox News or some of
the national news programs on network TV will provide information. PBS has the News Hour weekday
nights at 6:00 PM and the Nightly Business Report at 5:30 PM. Furthermore, NPR has a daily business
report at 6:30PM. Local news is unsuited for the purposes of this class.
Grading Policies
We will strictly adhere to all Houston ISD policies in respect to grading, make-up work, progress reports
and attendance. This information can be found in your student handbook.
Activities and Grading:
Section Tests/
Research Papers/ Presentations
Quizzes/FRQs (Free Response Questions)
Daily Activities
50%
30%
20%
There will be a minimum of two tests per cycle. They will include a combination of multiple choice and
free response questions. A timed free response question or quiz will be given approx. once a week. Daily
Activities, which include practice questions and worksheets, will not be graded on a daily basis. I will
randomly select two or more of all the activities given during the cycle and grade them. It is highly
recommended that you do all your homework and practice activities and keep them neatly organized in a
folder.
AP Test Information:
AP National Examination May 17, 2012 (Morning) – All students are expected to sign up and attempt the
exam. The table below explains the exam format.
The AP Macroeconomics Exam is two hours and 10 minutes long. In Section I, students are given 70
minutes to answer 60 multiple-choice questions; in Section II, they must answer three required freeresponse questions in 50 minutes -- one longer essay and two shorter essays. There is a 10-minute reading
period at the beginning of Section II
% of Grade Number of Questions Time Allotted Reading Period
Section I 66 2/3
60
70 minutes
Section II 33 1/3
3 required
50 minutes
10 minutes
© 2006 The College Board. All rights reserved. Visit apcentral.collegeboard.com (for AP
professionals) and
www.collegeboard.com/apstudents
THE FOLLOWING IS THE TENTATIVE COURSE OUTLINE WITH OBJECTIVES AND
QUESTIONS COORELATED TO THE AP COURSE
OUTLINE.
Lesson Plans-Fall 2011
Cycle I
Week I
Unit 1: An Introduction to Economics
Topic I: Basic Economic Concepts
A. Scarcity — What is it? Why is it so important to economic thought?
B. Opportunity Cost — Define and compute it. Why can it never be
avoided?
C. Production Possibilities — Construct and interpret production
possibilities schedules, and graphs; relate production possibilities
curves to the issues of scarcity, choice and cost. Why are most PPCs
bowed out?
Week II
D. Specialization and Comparative Advantage — Define and calculate
absolute and comparative advantages for production exchange
E. Functions of Any Economic System
1. Answering the questions: What to produce? How to produce?
For whom to produce?
2. Define ways societies determine allocation, efficiency, and equity.
Week III
Topic II: Demand, Supply, and Price Determination
A. Demand — Define and illustrate demand through schedules and
graphs
1. Distinguish between change(s) in quantity demanded and
change(s) in demand.
2. Examine the inverse relationship existing between quantity
demanded and price. Evaluate the Law of Demand.
3. Identify and explain the variables which cause a change in
demand.
4. Illustrate graphically a change in demand versus a change in
quantity demanded.
B. Supply — Define and illustrate supply through schedules and graphs
1. Distinguish between change(s) in quantity supplied and change(s)
in supply.
2. Examine the direct relationship existing between quantity
supplied and price. Evaluate the Law of Supply.
3. Identify and explain the variables which cause a change in supply.
4. Illustrate graphically a change in supply versus a change in
quantity supplied.
C. Equilibrium Price and Quantity — Define and illustrate equilibrium
through schedules and graphs
1. Define and illustrate surpluses and shortages.
2. Define the effects of surpluses and shortages on prices and
quantities.
3. Interpret the effects of a price floor and price ceiling on
equilibrium price and quantity.
4. Introduction to market failures: Lack of competition, externalities,
and public goods.
Week IV
Unit 2: Measurement of Economic Performance
Topic I: Gross Domestic Product and National Income Concepts
A. Measuring GDP, 4-Sector Circular Flow Model, and Flow versus
Stock
1. Expenditure Approach [C+I+G+(X-IM)] where
C = Personal Consumption Expenditures
I = Gross Private Investment
G = Government Consumption Expenditures and Gross
Investment
X-IM = Net Exports
2. Income Approach (W+I+R+P) where
W = Compensation of Employees
I = Net Interest
R = Rental Income of Persons
P = Profits (Non-income adjustments)
3. Problems with calculating GDP— Nonmarket transactions,
distribution, kind and quality of products.
4. Changing Nominal GDP (NGDP) to Real GDP(RGDP). How
and why?
5. Other national accounts: Net National Product (NNP), National
Income (NI), Personal Income (PI), and Disposable Income (DI).
Week V
Topic II: Unemployment and Business Cycles
A. The Roller Coaster — The four phases of the business cycle
B. Total Spending and How It Affects the Business Cycle
C. Unemployment — Defined
D. Problems with the Unemployment Rate — Who is counted and
who isn’t?
E. Types of Unemployment
1. Seasonal, frictional, structural, cyclical
2. Which type(s) affect the unemployment rate?
41
F. Full Employment — What is it? What are the implications if
achieved?
G. The GDP Gap — Explaining lost potential
Week VI
Topic III: Inflation
A. The Meaning and Measurement of Inflation
B. The Consumer Price Index (CPI) and How It Is Computed
C. Problems with the CPI
D. Other Indexes: Producer Price Index
E. Consequences of Inflation: shrinking incomes, changes in wealth,
effect on interest rates
F. Demand-Pull and Cost-Push Inflation
Cycle II
Week I
Unit 3: Macroeconomic Theory and Policy
Topic I: The Classical Theory and the Keynesian Theory: An Introduction
A. The Role of the Consumption Function
B. Marginal Propensities to Consume and Save
C. Why the Consumption Function Shifts and How It Affects
Aggregate Demand
D. The Role of the Investment Function
E. Why is Investment Demand unstable?
1. Expectations
2. Technological change
3. Capacity utilization
F. Investment as an Autonomous Expenditure
G. Graphing the Aggregate Expenditure Function
Week II
Topic II: Keynesian Model in Action
A. Government Spending and How It Affects Aggregate Demand
B. Adding International Trade to the Aggregate Expenditure Model
C. The Spending Multiplier— the math and its effects
D. Recessionary and Inflationary Gaps — a graphing exercise
Topic III: Aggregate Demand and Supply
A. Aggregate Demand Curve — Reasons for Its Shape
1. Real balances effect
2. Interest rate effect
3. Net export effect
B. Nonprice-Level Determinants of Aggregate Demand
C. Aggregate Supply Curve
1. Classical view
2. Keynesian view
3. Changes in equilibrium price and quantity with the three ranges
D. Nonprice-Level Determinants of Aggregate Supply
Week III
Topic IV: Fiscal Policy/Public Sector
A. Discretionary Fiscal Policy
1. Changes in government spending
2. Changes in tax rates
3. Balanced-budget multiplier
B. Supply-Side Policies
C. Laffer Curve
D. Government Size and Growth
1. Financing budgets
2. Government expenditure patterns
E. Types of Taxation
1. Progressive
2. Proportional
3. Regressive
F. Federal Deficits and the National Debt
1. The Federal Budget-Balancing Act
a. Gramm-Rudman-Hollings Act
b. Line-item veto
c. Budget ceiling
2. Should we worry about deficits or the debt?
Week IV
Topic V: Money, Banking, and Monetary Policy
A. Three Functions of Money
B. What Stands Behind the U.S. Dollar?
C. The Three Money Supply Definitions
1. M1: most narrowly defined money supply
2. M2: adding near monies to M1
3. M3: adding large time deposits to M2
D. The Federal Reserve System (FED)
1. Origins and organizational structure
2. Powers of the FED
a. controlling the money supply
b. clearing checks
c. supervising and regulating the banks
d. loaning currency to banks
e. acting as the bank for the U.S. government
Week V
3. Tools of the FED
a. open market operations
b. discount rate
c. reserve requirement
E. The Money Multiplier
1. Theory versus reality
F. Monetary Policy Shortcomings
1. Money multiplier inaccuracies
2. Lags in policy effects
G. Monetary Policy
1. The demand for money and how it may affect interest rates
2. How monetary policy affects prices, output and employment
3. The Monetarist view of money (MV=PY)
4. A comparison of views: Monetarist, Keynesians and Classical
Economists
Cycle III
Week I
Topic VI: The Phillips Curve and Expectations Theory
A. What Is the Phillips Curve?
1. In the short run
2. In the long run
B. Rational Expectations Theory
1. Can it work?
Week II
Unit 4: The International Economy
Topic I: International Trade and Finance
A. Why Nations Trade at All
B. Comparative and Absolute Advantage
C. Free Trade versus Protectionism
1. Arguments for free trade
2. Arguments against free trade
D. The Balance of Payments
1. Current account
2. Capitol account
3. International debt of the U.S.
Week III
E. Exchange Rates
1. Supply and demand for foreign exchange
2. Current fluctuations
a. appreciation and depreciation
b. graphing currency changes
Week IV
Topic II: Comparative Economic Systems
A. Basic Types of Economic Systems
1. Traditional, command, and market economies — defined and
analyzed
2. The mixed economy of today
3. Capitalism and socialism— basic tenets
4. Comparing the systems
B. Comparing Developed and Developing Countries
1. Classifying countries by GDP per capita
a. problems with classification
2. How to sustain economic growth in developing countries
3. Implications for a changing world
Week V
AP Test taking strategies and Review
Week VI
Final Exams
Responsibilities and Expectations:
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Follow all classroom procedures outlined in the student handbook and the HISD student code of
conduct
This is a university level class. If you are unable to behave and commit to the material you might
be in the wrong class.
Attendance is vital to success. In a course of this length every meeting counts. Missing more than just a
couple of classes will be hard to make up for.
All handwritten work has to orderly and preferably written in cursive or it will not be accepted.
Students are expected to sit straight in their student desks and respect the professional atmosphere of
this classroom.
Students are expected to wait their turn and raise their hands until recognized by the instructor.
Tardiness is not acceptable. If you know you are going to be late for class you must first report to your
classroom and then report to administration. After reporting to administration you are to return to class
immediately.
Note taking during lectures is mandatory.
There are no restroom breaks in the first and last 15 minutes of the class period. Even then you are not
allowed to leave the classroom except in the case of an emergency, which is to be determined by me.
Students need to come prepared to class. Folder, notepaper, graphing paper, pencils, pen, colored
pencils, rulers, calculators and textbook are required everyday. Failure to comply may lead to
disciplinary action.
Obvious disrespect of the instructor and/or other students will have serious disciplinary consequences.
Never throw away any handouts or graded activities. I can guarantee you will need them.
There are no extra credit assignments in this class.
Non-Economics related materials will be confiscated. The instructor will throw homework or
assignments from other classes away.
Talking will not be permitted unless as part of a student activity.
Make-up Policy: In the case of an absence it is the students’ responsibility to contact the instructor for
any missed assignments. The student has 3 days to make-up missed work due to absences. I will not
remember every absence and it is in your best interest to do so.
Re-take Policy: Students will be given a chance to re-take a failing test grade. The failing grade and
the re-take grade will be averaged out and the student will be assigned a new grade, which is not to
exceed 75%. There will be no re-takes on tests given during the last week of each cycle. Final exam
cannot be re-taken. Students need to request a re-take in writing (forms are available in the classroom)
and schedule a re-take date with the instructor within 5 days of the receipt of the failing grade.