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COURSE OUTLINE – AP MACROECONOMICS
TEXT
Mankiw, N. Gregory. Principles of Macroeconomics. Fourth Edition Cincinnati: South-Western.
OTHER MATERIALS
Current news items from newspapers, television, and the Internet will be used as appropriate throughout the
course.
We will interact with the following website throughout the semester; www.reffonomics.com.
COURSE REQUIREMENTS
This course will cover the following topicsBasic economic concepts
Measurements of economic performance
National income and price determination
Financial sector
Inflation, unemployment, and stabilization policies
Economic growth and productivity
Open Economy (international trade and finance)
Aggregate economic activity, utilization of resources within and across countries, and the critical evaluation of
determinants of economic progress and economic decisions make by policy makers.
Generate, interpret, label, and analyze graphs, charts, and data to describe and explain economic concepts.
GRADING
This course will have four major unit tests and weekly quizzes that will contain a majority of the points you can
earn during the semester. You will also be expected to keep up with daily work and reading on a regular basis, in
addition to the bi-weekly journaling as a means to ensure your understanding of the material. The grading
breakdown will be as follows:
75% Tests and Quizzes
15% Daily work
10% Journal
UNIT 1
BASIC CONCEPTS/SUPPLY AND DEMAND 2 WEEKS
TOPICS
Scarcity, Choice, Opportunity cost, PPF, Basic Marginal Benefit/Marginal Cost Analysis, Comparative and
Absolute Advantage, Demand, Law of Diminishing Marginal Benefits, Supply, Consumer and Producer Surplus,
Consumer Choice/Optimal Purchase Rule, Allocative Efficiency, Elasticity, Total Revenue Test, Price
Discrimination, Price Floors and Ceilings, Efficiency versus Equity
READINGS
Mankiw, Principles of Economics, Chapter 1; Chapter 2; Chapter 3, Chapter 4; Chapter 5; Chapter 6
STANDARDS


9-12.E.1.2A
Students are able to analyze graphs to determine changes in supply and
demand and their effects on price and quantity.
9-12.E.1.1A
Students are able to differentiate the patterns and networks of global economic
interdependence in relation to local, regional,a nd world economies.
UNIT 2
MEASUREMENT OF ECONOMIC PERFORMANCE; ECONOMIC GROWTH AND PRODUCTIVITY
6 WEEKS
TOPICS
GDP, GNP, RGDP, Consumption, Investment, Government Purchases, Net Exports, Employment,
Unemployment (Rate), Natural Rate of Unemployment, Labor Force (participation rate), Efficiency wages,
Business Cycle, Types of Unemployment, Inflation, CPI, Interest Rates, Productivity, Physical Capital, Human
Capital, Natural Resources, Technological Knowledge, Diminishing Returns, Catch-Up Effect, Public Policy, LongRun Economic Growth, Financial institutions, Saving, Investment, Stocks, Bonds, Loanable Funds Market (curve),
Government deficit/surplus, Present value, Future value
READINGS
Mankiw, Principles of Economics, Chapter 23; Chapter 24, Chapter 25, Chapter 26, Chapter 27 pg 597-600,
Chapter 28
STANDARDS

9-12.E.1.4A
Students are able to describe methods used to measure domestic output,
income, and price level
national
UNIT 3
MONETARY SYSTEM, GROWTH, AND INFLATION; OPEN ECONOMIES 3 WEEKS
TOPICS
Functions of Money, M1, M2, Money Stock, Money Supply, Federal Reserve System, Tools of Monetary Policy,
Fractional Reserve Banking, Money Multiplier, Inflation (Costs of), Deflation, Classical Theory, Monetary
Neutrality, Quantity Theory of Money, Money Market Curve, Real/Nominal Interest, Net Exports, Capital Flows (in,
out), Real/Nominal exchange rates, Foreign Exchange Market Curve,
READING
Mankiw, Principles of Economics, Chapter 29; Chapter 30, Chapter 31, Chapter 32
STANDARDS

9-12.E.1.3A
Students are able to compare and contrast the economic systems of foreign
countries with the market system of the United States.
UNIT 4
MACROECONOMIC THEORY AND POLICY 6 WEEKS
TOPICS
Classical Theory, Keynesian Theory, Consumption Function, Aggregate Demand, Aggregate Supply, recession,
depression, models of AD/AS, AD/AS curves, Natural Rate of Output, Stagflation, Nonprice-Level Determinants,
Fiscal Policy, crowding-out effect, Multiplier effect, Phillips Curve (SR and LR), Money, Monetary Policy
READINGS
Mankiw, Principles of Economics, Chapter 33; Chapter 34; Chapter 35
STANDARDS

9-12.E.1.5 A
Students are able to describe the effect of fluctuation in national output and its
relationship to unemployment and inflation.