Download AP Macro Syllabus

AP Macroeconomics Course Syllabus
TEACHER: Ms. Carolyn Frischman
ROOM #: B-27
CONFERENCE HR: 4th
PHONE: (586) 797-2027
E-MAIL: [email protected]
COURSE WEBSITE: http://www.aplia.com
Course Overview:
Advanced Placement Macroeconomics is a semester-long course (1/2 social studies credit) that
focuses on building broad-based knowledge of economic fundamentals and preparing students for
success on the AP Macroeconomics Exam in May and achieving college credit while still in high school.
The course utilizes college level materials, primary sources, and web-based resources. Students are
required to participate in daily readings, note-taking, activities, written and web-based assignments and
discussions (including Socratic Circle). They will also complete challenging exams, a variety of projects,
cooperative learning experiences, and oral and multi-media presentations to gain an understanding of
fundamental macroeconomic concepts and their relation to the world of business today. Writing skills are
emphasized. This course serves as a foundation not only for future study of economics, but also the
related fields of business, finance, marketing, political science, and mathematics.
Text: Mankiw, N. Gregory. Principles of Economics. 4th ed. Mason, OH: Southwestern, 2006.
Course Materials:
Each student is required to maintain a portfolio that is to be used only for AP
Economics. Portfolios must consist of the following: 2 ½” 3-ring binder, 5 dividers with tabs, loose-leaf or
spiral-bound college-ruled paper for note-taking, and an adequate supply of pens, #2 pencils, and a
highlighter pen. Once assembled, students are required to bring portfolios, along with course textbooks,
to class every day. Portfolios will be examined periodically (often unannounced) and will be factored into
course grades. Taking class notes (Cornell and Student Powerpoint) are required and are part of
portfolio grades. Portfolios will be collected for a final comprehensive grading at the end of the
course. Portfolio materials must be brought to class for assembly on:
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Units of Study
Mankiw Textbook Chapters 1-2, 4-6, 23-35
Unit 1: Introduction/Basic Economic Concepts (Chaps. 1 & 2) (Subject to modification – TBA)

definitions, scarcity, trade-offs, opportunity cost, economic systems, “thinking at the margin”, circular flow,
production possibilities, specialization, and absolute and comparative advantage
Unit 2: How Markets Work (Chaps. 4-6) (Subject to modification – TBA)
Market structures, supply & demand, supply and demand curves, equilibrium, income and substitution
effects, normal and inferior goods, price system, elasticity, price ceilings and price floors, tax incidence
Unit 3: The Data of Macroeconomics Chaps. 23 & 24)

Gross Domestic Product, the components of GDP (C+I+G+NX), real vs. nominal GDP, Consumer Price
Index (how it’s calculated, problems with measuring CPI, GDP deflator vs. CPI, real and nominal interest
rates, other price indices)
Unit 4: Real Economy in the Long-Run (Chaps. 25-28) (Subject to modification – TBA)

Production and Growth, determinants and role of productivity, economic growth and public policy (saving
and investing, investment in human and physical capital, research and development, diminishing returns
and catch-up effect, free trade), The Financial System (national income accounts, financial institutions in the
US economy, market for loanable funds, government budget deficits and surpluses, finance tools: the Rule
of 72, unemployment (definition and measurement, types of unemployment, natural rate of unemployment,
unions and collective bargaining, theory of efficiency wages)
Unit 5: Money and Prices in the Long Run (Chaps. 29 & 30)

Definition of financial assets: money, stocks, bonds, economic functions of money, kinds of money,
measures of the money supply, The Federal Reserve System (Fed’s organization, FOMC), Banks and
Money Supply (money creation and fractional reserve banking, money multiplier, Fed tools of monetary
control), Money growth and inflation (money supply and money demand / money market, quantity theory of
money, velocity of money, inflation tax, Fisher effect, costs of inflation - Shoeleather costs, menu costs,
present and future value)
Unit 6: The Macroeconomics of Open Economies (Chaps. 31 & 32)

Exports, imports, net exports, Net Capital Outflow (balance of payments accounts - current and capital
account), exchange rates (nominal & real), purchasing-power parity, market for loanable funds, market for
foreign currency exchange (currency appreciation & depreciation), balance of trade, political instability and
capital flight
Unit 7: Short-Run Economic Fluctuations (Chaps. 33-35)

The Business Cycle, aggregate demand curve and its determinants, aggregate supply curve and its
determinants (short run vs. long run, sticky vs. flexible wages and prices), actual vs. full-employment output,
economic fluctuations, Monetary policy and aggregate demand (Fed tools, role of interest rate targets in
Fed policy), Fiscal policy and aggregate demand (fiscal policy tools, multiplier effect, crowding-out effect),
policy mix, government deficits and debts, stabilization policy – active and automatic, trade-off between
inflation and unemployment (Phillips curve – short-run and long-run), inflation (types – demand-pull and
cost-push, costs of reducing inflation)
Rational Expectations Theory
Assignments/Tests:
 A test is given after each unit. Each test is designed to replicate the AP Macroeconomics exam in
that 2/3 of each test is multiple choice and 1/3 is free-response.
 Small quizzes are given to students to encourage them to keep up with the textbook readings.
These are used at the instructor’s discretion.
 Most assignments consist of practical problem sets, readings, analyses, and written assignments
from a combination of the following, in addition to the course textbook:
o Aplia course website - http://www.aplia.com
o New York Times “Upfront” Magazine
o AP Microeconomics/Macroeconomics “5 Steps to a 5” exam review books
o The College Board Website – www.collegeboard.org/
 Additional assignments may/will include, but are not limited to, web-based assignments, special
projects, research projects, oral and multi-media presentations, simulations, round-table
discussions, and group work.
Anticipated Homework/Study Load:
It is anticipated that students in AP Macroeconomics will average spending 30-45 minutes 4 days
a week on assignments, readings, or study related to this course at home.
Late & Make-up Work:
Students have exactly the number of days they were absent to turn in make-up work. Make-up
work will only be accepted for excused absences and contact with the instructor must be made asap if an
excused absence necessitates “re-opening” an assignment on Aplia that has passed its due
date/time. Make-up quizzes and tests must be taken in the same time frame as make-up work. Late
work will only be accepted on an AMNESTY DAY. There will be 3 Amnesty Days per marking
period. Each student will receive two Amnesty passes per marking period. Amnesty work will only be
accepted that is complete, has a pass attached to it, and is ready to hand in at the beginning of the class
period on an Amnesty Day. Extra credit points will be given for unused Amnesty passes at the end of
each marking period.
Attendance:
U.C.S. Board of Education policy on tardies and absences will be followed. It is students’
responsibility to find out what they missed following an absence, check Aplia daily, pick up any
handouts/assignments from the instructor, obtain missed class notes from a classmate, and be aware of
announced test and due dates.
Grading Policy:
A simple point system is used in this course. Each component of the course is awarded a point
value. Points are converted to a percentage, and percentages to letter grades. Semester grades will be
determined on the basis of the standard 40%/40%/20%. Letter grades are assigned consistent with
UCS Board policy. Comprehensive, written final exams will be administered during exam weeks.
Participation Policy:
See handout.